Shares of CNTN, Canton Strategic Holdings’ Common Stock, Traded Between Verified Counterparties including Five North, DRW Cumberland, and Flowdesk on Tradecraft’s TSV

Trades Mark the First Transactions in Issuer-Sponsored Tokenized NMS Stock, with Fairmint’s Onchain Transfer Agent, Under the SEC’s Innovation Exemption for Onshore U.S. Equities

Canton Strategic Holdings, Inc. announced the first trades of its issuer-sponsored tokenized common stock on TSV LLC (“TSV”), the permissioned venue for tokenized NMS stocks on the Canton Network. Fairmint TA LLC, the Company’s SEC-registered transfer agent, recorded the shares in token form. The trades were executed on November 4 through a permissioned pool on Tradecraft, the automated market maker protocol that powers TSV, and settled atomically on the Canton Network, with Five North, the existing shareholder and seller; DRW Cumberland, the buyer; and Flowdesk Liquidity Solutions LLC, the liquidity provider. These trades are the first of their kind under the SEC’s September 17 Innovation Exemption and follow the Company’s October 29 announcement of its agreement to make its shares of common stock available to trade on TSV.

“Last week we set out to be the first tokenized U.S. equity traded under the SEC’s new framework. Today, the first trades are done,” said Mark Wendland, Chairman and CEO of Canton Strategic Holdings. “Our shareholders on TSV keep the same rights they have on Nasdaq, and the Canton Network’s privacy protects them from the MEV frontrunning and information leakage common on other public chains. Moreover, DRW Cumberland, Flowdesk, and Five North participating demonstrates institutional market readiness. With the framework for regulated, compliant, onshore tokenized equities enabled by the SEC’s Innovation Exemption and the visionary work of TSV and Fairmint to build a venue on the Canton Network, issuers can maintain control of where and how their stock is tokenized.”

Five North, an existing shareholder of the Company, requested that its shares of CNTN common stock be registered in tokenized form. Fairmint, on behalf of the Company, recorded the issuer-sponsored tokenized shares directly with Five North’s verified Loop Wallet, moving its position from a broker-dealer account onto the Company’s onchain shareholder register. A pool operated by TSV was then established among liquidity providers, including Flowdesk and DRW Cumberland, where Flowdesk provided liquidity and DRW Cumberland executed the first purchases of tokenized CNTN common stock.

TSV offers shareholders of the Company’s tokenized shares the ability to participate in its automated market maker on the Tradecraft protocol, allowing for 24/7 trading availability, atomic settlement, and limiting access to verified holders. Only holders whose identity and wallets have been verified and approved to get a holder account by the transfer agent Fairmint can hold and trade the tokenized shares, with requirements for identity verification and sanctions screening.

“We set out to make our first listing the standard for how tokenized U.S. equities should work under the SEC’s Innovation Exemption,” said Ryan Trinkle, Co-Founder of TSV. “The token is issuer-sponsored and carries the same rights as the CNTN stock that trades on Nasdaq. Fairmint, an SEC-registered transfer agent, keeps the official record, and every holder is verified before they can hold or trade. On Tradecraft, approved investors can now trade at any hour, and shares and payment settle atomically on the Canton Network.”

The Company’s tokenized shares are issued on behalf of the Company as issuer-sponsored shares by Fairmint, the Company’s SEC-registered transfer agent and a subsidiary of Fairmint, Inc. Fairmint maintains the official onchain record of ownership on the Canton Network, operates the allow list of verified holders and wallets, and applies the Company’s transfer controls. Holders of these issuer-sponsored tokenized shares receive the same rights and privileges as those holding the Company’s stock via Nasdaq.

“This is a landmark for U.S. equity markets: a Nasdaq-listed company’s actual stock trading onchain, with shareholder rights intact and Fairmint maintaining the official ownership record,” said Joris Delanoue, CEO and co-founder of Fairmint. “A blockchain can settle a trade, but it takes an accountable transfer agent to say who legally owns the share. Since we founded Fairmint, we’ve been building toward a market where equity is programmable and ownership moves with it. Today, we’ve put our infrastructure to work on the Canton Network with Canton Strategic Holdings and TSV. This trade opens a path for public companies to bring their shares onchain while retaining control.”

“The SEC has opened a path for U.S. listed securities to trade onchain. Our job is to make sure that path has reliable liquidity from the very first trade. Being among the first covered firms under the Innovation Exemption is exactly what we’ve been building toward,” said Reed Werbitt, U.S. CEO and Global CRO of Flowdesk.

“Canton was built so institutions could move real assets on chain with confidence. Today a Nasdaq-listed company’s shares were tokenized, held in Loop Wallet, and settled on the network within the SEC’s new framework. We’re proud Five North helped make the first trade happen,” 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 further the integration of the network into modern financial systems. As a Super Validator on the Canton Network and a member of the Canton Foundation, the Company continues to support and help secure the network in line with its commitment to strengthening the ecosystem.

Source: Canton Strategic Holdings