05.02.2016

Delaware to Add Distributed-Ledger Share Class

05.02.2016

In a speech that was half about blockchain and a blanket invitation for for blockchain companies to re-locate to Delaware, Governor Jack Markell (D) announced his state’s intention to create a new class of corporate shares, known as distributed-ledger shares.

This is the natural progression that began when Delaware supported the ‘dematerialization’ of stock certificates in the 1980s as well as support of electronic corporate-record transmission, electronic director votes, and virtual stockholder meetings in 1990s, he said. “Our aim has always been, under corporate law, to harness the benefits of new technologies while limiting the risk for businesses.”

Gov. Jack Markell, Delaware

Gov. Jack Markell, Delaware

The Delaware State Bar’s Delaware Corporation Law Council has given strong backing to the initiative, according to Markell. “The Council has agreed to explore the need for any changes or clarification according to corporation law to address and enable the authorization of these distributed ledger shares.”

Marco Santrori, a partner at Pillsbury Winthrop Shaw Pittman and whose firm is working on the initiative, estimated that it would take a year before any necessary change would be concrete in the minds of the state legislature.

The rather quick legislative turnaround is due to the state’s practice of reviewing an updating its corporate statutes annually.

One immediate benefit for corporations, and other Delaware entities, that adopt distribute ledger share could be simplified management of their capitalization tables and share registries by implementing blockchain, according to Markell. “Many companies are staying private longer and longer and keeping track of shareholder rights after 10 rounds of financing, each with their own terms and conditions, can be like solving a logic problem.”

Whether Delaware plans for investors to trade the new share class on or off exchange remains unclear as Markell touts blockchain’s benefits to the middle and back office while Santrori said that the new share class would be more liquid than existing share classes.

“They are going to have greater efficiency of settlement and clearance,” he said. “This is something that investors want.”

In the meantime, the state government has no immediate plans to enact laws or issue regulations regarding licensing of virtual currency or blockchain businesses, he added. “We want to actively observe. If and when an appropriate time comes we will work with the industry and consumers groups to describe best practices.”

Featured image via Natalia Merzlyakova/Dollar Photo Club

Pension funds, sovereign wealth funds, endowments and other institutional asset owners are sitting on vast troves of data -- but extracting value from that data is more challenging than ever.

#AssetOwners #DataQuality

Technology costs in asset management have grown disproportionately, but McKinsey research finds the increased spending hasn’t consistently translated into higher productivity.
#AI #Fiance

We're in the FINAL WEEK for the European Women in Finance Awards nominations – don't miss your chance to spotlight the incredible women driving change in finance!
#WomenInFinance #FinanceAwards #FinanceCommunity #EuropeanFinance @WomeninFinanceM

ICYMI: @marketsmedia sat down with EDXM CEO Tony Acuña-Rohter to discuss the launch of EDXM International’s perpetual futures platform in Singapore and what it means for institutional crypto trading.
Read the full interview: https://bit.ly/45xRUWh

Load More

Related articles

  1. Outlook 2016: Alexander Lehmann, LSEG

    DMI will deliver blockchain-powered scale and efficiencies for the full asset lifecycle.

  2. This makes a traditionally hard-to-access market available to crypto-native investors and institutions.

  3. Pool tokens allow a range of already tokenised assets to be put together into a new token.

  4. Investors can access a tokenized real-world asset structured as a bond for storage service provider BoxDepo.

  5. This project in Hong Kong is a milestone for automating fund issuance & lifecycle management.

We're Enhancing Your Experience with Smart Technology

We've updated our Terms & Conditions and Privacy Policy to introduce AI tools that will personalize your content, improve our market analysis, and deliver more relevant insights.These changes take effect on Aug 25, 2025.
Your data remains protected—we're simply using smart technology to serve you better. [Review Full Terms] | [Review Privacy Policy] By continuing to use our services after Aug 25, 2025, you agree to these updates.

Close the CTA