FG Nexus Inc. (FGNX) Stock: Pioneers Tokenized Public Equity on Ethereum

Nasdaq-listed FG Nexus has partnered with Securitize to launch tokenized versions of its common and preferred stock on the Ethereum blockchain. The company becomes among the first Nasdaq-listed firms to offer shareholders the option to tokenize shares on Ethereum, marking a significant milestone in merging traditional equity markets with blockchain technology. The tokenized shares maintain identical legal rights to traditional shares while offering instant settlement and automated compliance features.

The partnership enables FG Nexus to create tokens of common and preferred shares that settle instantly on the Ethereum blockchain. Shareholders can now choose between holding traditional shares or converting them to blockchain-based tokens. This dual-format approach preserves familiar ownership structures while unlocking the efficiency benefits of distributed ledger technology. FG Nexus becomes the first to tokenize a dividend-paying, exchange-listed perpetual preferred stock, setting a precedent for other public companies exploring blockchain integration.

How FG Nexus Tokenized Stock Works on Ethereum

The tokenization process transforms conventional shares into digital assets that exist natively on Ethereum. Each token represents a fractional or whole share with enforceable legal rights identical to paper certificates. Settlement occurs in seconds rather than the standard two-day clearing cycle used by traditional brokerages. Smart contracts automate compliance checks, dividend distributions, and transfer restrictions according to securities regulations.

Securitize provides the technical infrastructure and regulatory framework for this tokenization initiative. The platform ensures that tokenized FG Nexus shares comply with SEC regulations while leveraging Ethereum’s programmability. Shareholders maintain full voting rights and dividend entitlements regardless of whether they hold traditional or tokenized shares. The blockchain records all ownership transfers immutably, creating transparent audit trails for regulatory purposes.

FG Nexus Strategy Behind Tokenized Public Equity

FG Nexus operates as an Ethereum treasury company, accumulating substantial ETH holdings as its primary business strategy. The company’s ETH position reached 50,770 ETH as of September 28, 2025, reflecting both purchases and staking rewards. CEO Kyle Cerminara announced plans to become a significant player in the Ethereum network with a goal of a 10% stake in ETH. This ambitious objective aligns with the decision to tokenize company shares on the same blockchain.

The tokenization initiative demonstrates FG Nexus’s commitment to blockchain integration beyond holding digital assets. By placing its equity on Ethereum, the company creates natural synergies between its treasury holdings and capital structure. Shareholders gain exposure to the company’s ETH reserves and the innovative equity distribution model. The move positions FG Nexus as a bridge between traditional finance and decentralized systems.

Tokenized Equity Market Growth on Ethereum

The broader tokenized securities market has expanded rapidly throughout 2025, with multiple platforms launching blockchain-based equity products. Kraken and Bybit simultaneously launched in June 2025, offering over 60 U.S. stock tokens branded as xStocks. These platforms tokenize blue-chip companies like Apple, Tesla, and NVIDIA, though typically through fund structures rather than direct share tokenization. Ethereum holds $90.8 billion total value locked, representing 60% of overall blockchain TVL, making it the dominant platform for tokenized assets.

FG Nexus differentiates itself by tokenizing actual company shares rather than derivative products. This approach provides direct ownership claims backed by the company’s transfer agent and regulatory filings. The model could inspire other publicly traded firms to explore native tokenization of their equity. Financial institutions increasingly recognize blockchain’s potential to reduce settlement times and operational costs across capital markets.

Benefits of FG Nexus Tokenized Shares

Instant settlement eliminates counterparty risk during the traditional clearing period. Shareholders can transfer ownership 24/7 rather than during exchange trading hours. Fractional ownership becomes more accessible through programmable share divisions. Smart contracts automate corporate actions like dividend payments without intermediary involvement. The transparent blockchain ledger reduces disputes over ownership records.

Tokenization also creates opportunities for innovative financial products built on equity tokens. Decentralized finance protocols could offer lending services using tokenized FG Nexus shares as collateral. Automated market makers might provide liquidity outside traditional exchange hours. Ethereum’s programmability enables use cases impossible with conventional share certificates. These features attract crypto-native investors while maintaining regulatory compliance for traditional shareholders.

Conclusion

FG Nexus’s partnership with Securitize to tokenize its Nasdaq-listed shares represents a pioneering step in blockchain-based public equity. The initiative combines the regulatory framework of traditional securities with Ethereum’s technological advantages. As tokenization infrastructure matures, more companies may follow this model to modernize their capital structures.