Securitize vs. Tokeny: End-to-End Security Token Issuance & Compliance

Integrated primary issuance platform: Combines investor onboarding (KYC/AML), cap table management, and secondary trading via its ATS (Securitize Markets). This matters for issuers wanting a single, compliant interface for the entire token lifecycle, from fundraising to investor relations.

Active regulatory licenses: Holds a broker-dealer license and operates an SEC-registered ATS (Alternative Trading System). This matters for U.S.-focused issuers requiring deep integration with the SEC and FINRA-regulated environment for secondary liquidity.

On-chain compliance engine: Offers the T-REX protocol, a suite of modular, auditable smart contracts for identity verification, transfer restrictions, and corporate actions. This matters for developers and institutions needing to embed compliance directly into their token's logic or integrate with custom applications.

Chain-agnostic infrastructure: Supports tokenization on Ethereum, Polygon, and other EVM chains. This matters for projects prioritizing lower transaction fees, scalability for a large investor base, or integration with a specific DeFi ecosystem.

Established institutional network: Partners with major financial entities like KKR, Avalanche, and Circle. This matters for large-scale asset managers seeking credibility, pre-vetted investor access, and integration with traditional finance pipelines.

API-first and white-label solutions: Provides extensive APIs and SDKs for custom integration. This matters for fintechs, banks, or marketplaces that need to brand and embed tokenization features into their own existing platforms and workflows.

Direct broker-dealer and transfer agent licenses (Securitize Markets, LLC). This allows them to operate as a primary market participant, not just a tech provider. This matters for issuers who want a single, regulated entity managing the entire lifecycle, from issuance to secondary trading on their ATS. Integrates with SEC's EDGAR system for automated Form D filings.

Heavy reliance on the Securitize Capital and DS Protocol ecosystem. While robust, it can create vendor lock-in for secondary liquidity, which is primarily funneled through their affiliated ATS and partner exchanges. Migrating token holders to another platform or compliance engine post-issuance is complex. This matters for institutions prioritizing long-term flexibility and multi-venue distribution.

Technology-agnostic compliance layer built on the ERC-3643 (T-REX) standard. Their ONCHAINID and tokenization suite can be deployed across any EVM chain (Ethereum, Polygon, Avalanche) and integrated with existing custody or exchange infrastructure. This matters for financial institutions (like ABN AMRO) that need to embed compliance into their own branded platforms and maintain chain flexibility.

No in-house broker-dealer or transfer agent license. Tokeny provides the technology, but issuers must engage with licensed third-party partners (e.g., KYC providers, legal advisors, regulated marketplaces) to complete the full issuance stack. This matters for issuers seeking a true one-stop-shop and who want to avoid the complexity and cost of managing multiple vendor relationships.

Specific advantage: Operates regulated entities in the EU (Securitize MiFID) and the US (SEC-registered Transfer Agent & FINRA member Broker-Dealer). This provides a single-vendor solution for cross-jurisdictional compliance, crucial for issuers targeting both US accredited investors and European markets under MiCA.

Specific advantage: Native integration with its own ATS (Alternative Trading System) and partnerships with public markets like Avalanche and Polygon. This creates a clearer path to liquidity post-issuance, which is a critical decision factor for issuers prioritizing investor exit options.

Specific trade-off: Heavy reliance on Securitize's proprietary DS Protocol for compliance enforcement. Migrating tokens off-platform is complex. Fee structure can be higher for full-service custody and transfer agency, impacting total cost of issuance for smaller deals.

Specific advantage: T-REX protocol standards (ERC-3643) are permissioned at the smart contract layer, allowing compliance logic to travel with the token. This enables deployment on any EVM chain and integration with third-party custodians or wallets, offering superior flexibility for bespoke architectures.

Specific advantage: Real-time, programmatic Investor Onboarding (KYB/KYC) and Rule Enforcement (e.g., transfer restrictions, caps) executed directly on-chain via the T-REX suite. This reduces administrative overhead and middlemen for issuers who need automated, auditable compliance workflows.

Specific trade-off: Acts as a technology provider rather than a fully licensed operator in key markets like the US. Issuers must engage their own licensed Transfer Agent and Broker-Dealer, adding complexity and vendor management overhead for regulated offerings.