Securitize shares slide 38% since it put Apple and Nvidia stock on Solana

Securitize has experienced a 38% decline in its share price since launching its tokenized stock platform on October 8, which offers blockchain-based versions of 12 major U.S. equities including Apple, Nvidia, and Tesla. The tokens are issued on the Solana blockchain, backed 1:1 by actual shares, and utilize USDC for settlement with Jump Trading acting as the market maker. Despite the initial launch-day optimism, the stock price fell as analysts at Citi downgraded the firm to neutral, citing concerns over revenue potential and the impact of lock-up expiries. The platform operates under the SEC's September 17 Innovation Exemption, which mandates that tokenized assets must carry the same shareholder rights as underlying securities to be considered valid. However, the initiative faces significant headwinds, as major issuers like Microsoft and Alphabet have reportedly objected to the tokenization of their shares under this framework. Furthermore, the platform has yet to see significant on-chain traction, with Solana Compass reporting that the tokens do not yet appear in their tracking data. This development highlights the complex regulatory and market challenges facing firms attempting to bridge traditional equity markets with blockchain infrastructure. The outcome of this venture remains uncertain as the firm prepares for its third-quarter earnings report in November.