Nasdaq-listed Canton Strategic Holdings plans tokenized stock trading from Nov. 2

Canton Strategic Holdings (NASDAQ: CNTN) is planning to place its own common stock onchain, with the corporation sponsoring the tokens.

The Canton Network investor announced on Oct. 29 that it reached an agreement with TSV LLC, a permissioned venue for tokenized NMS stocks on Canton, to enable the trading of its shares. Trading is anticipated to commence as early as Monday, Nov. 2.

The company stated that token holders will possess the identical rights as owners of CNTN shares traded on Nasdaq. These tokens will be created as issuer-sponsored stock by Fairmint, an SEC-registered transfer agent. Fairmint's onchain ledger will serve as the official record of ownership, with each transfer undergoing compliance checks.

This model was detailed by Securitize President Brett Redfearn in September. Redfearn stated on Unchained that "the token that you get is the stock," adding that "the issuer is involved."

This issuer route is significant under the SEC's Innovation Exemption, which is the Sept. 17 order permitting permissioned automated market maker venues to trade tokenized NMS stocks. If a third party tokenizes a company's stock, the venue must notify that company and wait a minimum of 30 calendar days; an objection from the company prevents the token from being on the venue.

Canton Strategic noted in its press release that its trading is "intended to be the first of its kind under the new SEC rules for tokenizing onshore U.S. equities." TSV CEO Ali Abrar stated in the same release, "We were the first to formally notify the SEC of our intent to operate a tokenized securities venue."

TSV plans to utilize an automated market maker built on the Tradecraft protocol, developed by Obsidian Software, to house the shares. Abrar mentioned in the release that "approved participants can provide liquidity and trade at any hour, with every trade settling atomically on the Canton Network."

Trading requires both the participant and their wallet to be cleared, a process incorporating identity verification and sanctions screening. The release also indicated that despite round-the-clock operation, trading will be subject to volume caps and risk controls, potentially pausing for maintenance or regulatory halts. As of Friday, TSV's website confirmed trading had not yet started, pending the satisfaction of the exemption's requirements.