Road to native stocks

Phase-1 tokens under the reference design are representations: backed by underlying equity held with a qualified custodian, while the legal share stays in traditional settlement. Holders get onchain exposure, but the token is not yet the share of record.

In a native model the token is the security itself, and the onchain record is the authoritative register — not a wrapper over shares held elsewhere. That single change removes the reconciliation gap between brokers, custodians, and registrars: instead of several institutions each keeping their own copy of who owns what, there is one always-current register of record, updated the moment a transfer settles.

For investors, the rights come with the token. Voting, dividends, and the legal protections of the share itself travel onchain rather than stopping at an intermediary — dividends can be paid directly to wallets, votes can be cast by signing from the wallet that holds the shares, and settlement of the actual security becomes real-time and around-the-clock rather than days later through clearing layers. Compliance is enforced at the token level, so eligibility checks travel with the asset and transfers between qualified holders can happen without a chain of intermediaries re-approving each step.

For issuing companies, native issuance turns the share register from a periodic reconciliation exercise into a live view: complete, real-time visibility of the holder base as capital is raised or shares change hands, direct communication with holders, and a more flexible, lower-cost way to issue and administer equity. And because the actual security lives onchain, it can plug into the broader onchain economy — serving as collateral and moving across venues — rather than a derivative of it.

In some markets, securities are already issued natively onchain — a regulated platform acts as the transfer agent of record and maintains a single shareholder registry spanning book-entry and onchain holdings, with eligibility enforced at the token level and conversion between formats. TokenForce's goal is the equivalent for European equities, under EU frameworks.

• Phase 1 — Representation — tokenized exposure backed by EU-custodied equity (the current reference design). Holders get price exposure, stablecoin settlement, and onchain transferability.
• Phase 2 — Native issuance — European equities issued and recorded onchain as the legal record under an EU prospectus — the token is the security, with onchain settlement and corporate actions, and the rights that come with the share itself.

What stays constant across both phases: the wallet-native model (assets delivered to the investor's own verified wallet), stablecoin settlement, and standard token interfaces. The phases change the legal depth of what the token is — not how it is held and used.