New York, November 4th / PRNewswire / -- Canton Strategic Holdings, Inc. (Nasdaq ticker: CNTN, hereinafter referred to as “Canton Strategic Holdings” or “the Company”) announced today that the tokenized common shares sponsored by its issuer have completed their first transaction on Canton Network under TSV LLC (“TSV”). TSV is a licensed trading venue for tokenized NMS stocks on Canton Network. Fairmint TA LLC (“Fairmint”) is the Company’s registered transfer agent for SEC, responsible for recording shares in token form. The aforementioned transaction was executed on November 4th through the licensed pool on Tradecraft; Tradecraft is the automated market maker protocol that drives TSV and achieved atomic settlement on Canton Network. The participants included existing shareholder and seller Five North, buyer DRW Cumberland, and liquidity provider Flowdesk Liquidity Solutions LLC (“Flowdesk”). These transactions are part of the first batch of such deals under the innovative exemption framework announced by SEC on September 17th, and they continue the arrangement announced by the Company on October 29th to offer its common shares for trading on TSV.
"Last week, we announced our intention to become the first tokenized U.S. stocks to trade under the new framework of SEC. Today, that first transaction has been completed," said Canton Strategic Holdings, Chairman and CEO of Mark Wendland. "Shareholders on TSV retain the same rights as they do when holding shares on NASDAQ, and the privacy protections of Canton Network protect them from the common issues such as race to the market and information leaks that occur on other public blockchains. In addition, the participation of DRW Cumberland, Flowdesk, and Five North indicates that the institutional market is ready. Driven by the SEC innovation exemption, TSV and Fairmint have established a framework for regulated, compliant, onshore tokenized stocks, allowing issuers to continue to control where and how their stocks are tokenized."
As an existing shareholder of the company, Five North requests to have the CNTN common shares they hold registered in a tokenized form. On behalf of the company, Fairmint directly records the tokenized shares sponsored by the issuer into the verified Loop Wallet of Five North, thereby transferring the holdings from the brokerage account to the company's on-chain shareholder registry. Subsequently, TSV established a pool among liquidity providers, including Flowdesk and DRW Cumberland; Flowdesk provided liquidity, and DRW Cumberland executed the first purchase of the tokenized CNTN common shares.
TSV allows shareholders whose shares have been tokenized by the company to participate in the automated market maker mechanism under the Tradecraft protocol, thereby supporting 24-hour, 7-day a week trading and atomic settlement. Access is limited to verified holders. Only those whose identities and wallets have been verified and who have been approved by the transfer agent Fairmint to open a holder account are eligible to hold and trade these tokenized shares, and they must also meet identity verification and sanctions screening requirements.
"We hope to set the standard for tokenizing U.S. stocks under the SEC Innovation Exemption Framework for our initial public offering," said Ryan Trinkle, co-founder of TSV. "These tokens are sponsored by the issuer and enjoy the same rights as the CNTN stocks traded on NASDAQ. As the official registration and transfer agent for SEC, Fairmint maintains the official records, and each holder must be verified before they can hold or trade them. On Tradecraft, approved investors can now trade at any time, with shares and payments being atomically settled on Canton Network."
The tokenized shares of the company are issued on behalf of the company by Fairmint. Fairmint acts as the company's SEC registration and transfer agent, and is also a subsidiary of Fairmint and Inc. Fairmint maintains official on-chain ownership records for Canton Network, operates a whitelist of verified holders and wallets, and executes the company's transfer controls. Shareholders who hold these issuer-sponsored tokenized shares enjoy the same rights and privileges as those who hold the company's stock through NASDAQ.
"This is a milestone for the U.S. stock market: real shares of a NASDAQ-listed company are traded on the blockchain, while shareholder rights remain unchanged, and Fairmint maintains the official ownership records," said Fairmint, CEO and co-founder of Joris Delanoue. "The blockchain can facilitate transaction settlement, but there must be a responsible transfer agent to confirm who legally owns these shares. Since the establishment of Fairmint, we have been working towards a market where equity is programmable and ownership can be transferred accordingly. Today, we have put our infrastructure into use on Canton Network together with Canton Strategic Holdings and TSV. This transaction paves the way for listed companies to bring their shares onto the blockchain while retaining control."
“SEC has opened up a path for blockchain transactions of securities listed in the United States. Our task is to ensure that this path has reliable liquidity from the very first transaction. Becoming one of the earliest institutions to be covered under the innovation exemption is exactly the direction we have been working towards,” said Flowdesk, CEO of Reed Werbitt in the United States and Global Chief Revenue Officer.
"The original intention of Canton was to enable institutions to confidently transfer real assets on the blockchain. Today, shares of a NASDAQ-listed company have been tokenized and stored in Loop Wallet, and the settlement was completed on the network under the new framework of SEC. We are very proud that Five North helped facilitate this first transaction," said Yiannis Varelas, founder and CEO of Five North.
Canton Strategic Holdings is an investor and active participant in the Canton Network ecosystem, providing both capital and insights to facilitate the further integration of this network into the modern financial system. As a super validator (Super Validator) of Canton Network and a member of Canton Foundation, the company continues to support and help ensure the security of this network, which is in line with its commitment to strengthening the ecosystem.
Regarding Canton Strategic Holdings, Inc.
Canton Strategic Holdings, Inc (Nasdaq ticker: CNTN) is the first listed company to utilize Canton Coin and support Canton Network in order to promote institutional blockchain adoption and the digitization of financial markets. In addition to creating value through business activities related to Canton Network, the company is also a strategic investor in the Canton ecosystem. For more information, please visit www.cantonstrategic.com.
About TSV LLC
TSV LLC was founded by Ali Abrar and Ryan Trinkle and is the first tokenized securities trading venue to complete the SEC innovation exemption process, which is detailed in Announcement No. 34-106402. This platform and venue allow approved participants to serve as automated market makers through the Tradecraft protocol on Canton Network, providing liquidity and facilitating transactions for tokenized NMS stocks. The Tradecraft protocol is a leading automated market maker protocol on Canton Network and was developed by Obsidian Software LLC. The trading venue is designed to operate 24/7, but it is subject to trading suspensions, maintenance, risk controls, and trading volume restrictions required by regulators. Settlement on Canton is atomic: either both parties to a transaction transfer funds simultaneously or neither transfers at all, which constitutes an instant delivery-for-payment (Delivery versus Payment) transaction. Participants and their wallets must be approved before trading, including undergoing identity verification and sanctions screening. Smart contracts enforce these rules for each token transfer. For more information, please visit tokenizedstockvenue.com.
About Fairmint
Fairmint is building a blockchain-based equity capital market platform, aiming to align record preservation with liquidity. Its subsidiary, Fairmint TA LLC (formerly known as Fair FP LLC), serves as the registration and transfer agent for SEC (file number 084-06901), providing on-chain solutions for issuers to retain control and protect shareholders' rights. Fairmint was founded in 2019 by Joris Delanoue and Thibauld Favre; it has developed Open Cap Table Protocol and is also a governing member of Open Cap Table Coalition. This alliance is responsible for maintaining industry open-source standards. For more information, please visit fairmint.com.
About DRW Cumberland
Since its establishment in 2014, DRW Cumberland has been providing liquidity to the global digital asset market and helping to build the systems and relationships on which institutional exchanges rely. The team under DRW combines the digital asset expertise of Cumberland with the company's over thirty years of experience in traditional markets, trading, risk management, market structure, and technology. We bring the right capabilities to each opportunity and provide institutional clients with deep liquidity and professional execution as traditional finance and digital assets converge. For more information, please visit drw.com.
About Five North
Five North operates and builds around the network in which it invests. As a super-verifier of Canton Network, Five North participates in ensuring the security and governance of this network, supports teams that build on it through Canton Ventures, and develops Loop – which connects institutions with Canton's wallets, data, and developer tools. For more information, please visit fivenorth.io and looptech.io.
About Flowdesk
Flowdesk Group is a comprehensive digital asset trading and technology company that focuses on liquidity solutions and over-the-counter (OTC) trading. Flowdesk Group has offices around the world. By combining deep financial and crypto expertise with algorithms and proprietary trading systems, it connects digital assets to global liquidity. Its technology is designed to bring clarity and precision to the digital asset and tokenized asset markets. For more information, please visit flowdesk.co.
Tips on Forward-Looking Statements
This press release contains “forward-looking statements” as defined by the U.S. Federal Securities Laws. Forward-looking statements are statements other than historical facts, including but not limited to management’s expectations, strategic implementation, market conditions, and the company’s involvement in Canton Network related matters. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ significantly from them. For more information regarding factors that may affect the company’s prospects, please refer to the company’s annual and quarterly reports submitted to the U.S. Securities and Exchange Commission, which can be found at www.sec.gov. Except as required by law, the company has no obligation to update these statements.
Securities Disclaimer:
The information provided in this press release is for reference only and does not constitute any investment advice, endorsement, analysis, or recommendation regarding securities, digital assets, financial instruments, investments, or issuers. Investing in cryptocurrency securities, including tokenized common stocks and digital assets, involves significant risks, including the risk of total loss. Trading in tokenized securities may also involve additional technical, operational, regulatory, liquidity, and other risks related to blockchain infrastructure and trading platforms. It is recommended that individuals consult their legal, tax, and financial advisors before making any investment decisions.
This press release does not constitute an offer to sell or an invitation to purchase, nor should it constitute a sale of any securities in any state or other jurisdiction unless the securities laws of that state or jurisdiction have been registered or qualified. Otherwise, such offers, invitations, or sales would be illegal.
Canton is a registered trademark of Digital Asset ( Switzerland ) GmbH. Digital Asset has no association with the operations of Canton Strategic Holdings and Inc; it also does not provide sponsorship or endorsement for them.
Contact Information
Media: Gasthalter & Co. (212) 257-4170 canton @ gasthalter.com
Investor: ir @ cantonstrategic.com
X: @ CantonStrategic
LinkedIn : Linkedin.com / CantonStrategicHoldings
Website: www.cantonstrategic.com
