Plume Network has gained regulatory approval as an SEC-registered transfer agent for tokenized securities, sending its native token up 25% as trading volume jumped 186%.
The layer-2 blockchain can now manage digital securities and shareholder records directly on-chain. Its registration enables interoperability with the Depository Trust & Clearing Corporation settlement network.
Chris Yin, CEO and co-founder of Plume, stated that the approval streamlines digital securities issuance through a fully on-chain protocol built with regulatory partnership. The platform aims to reduce tokenization timelines from months to weeks via smart-contract automation.
Plume's infrastructure will support on-chain IPOs, small-cap fundraising, and registered funds. The regulatory framework provides institutions, including BlackRock, Fidelity, and Apollo, with compliant pathways for on-chain asset transfers.
Transfer agents traditionally maintain shareholder registries, manage ownership changes, and handle dividend payments. Plume replicates these functions on-chain using distributed ledger technology for secure and transparent asset tracking.
The approval followed active collaboration with regulatory bodies, including contributions to GENIUS Act discussions. SEC Commissioner Hester Peirce expressed openness last week to engaging with RWA tokenization issuers.
Plume's regulated transfer agent is operational immediately, though initial product offerings involving Nest protocol vaults are planned for Q1 2026. Nest enables fund managers to create vaults backed by regulated instruments where users deposit stablecoins to earn yield.
The platform has attracted interest from 40 Act funds, which represent over $39 trillion in the U.S. asset management industry. Regulatory challenges around custody remain, though Plume anticipates these will diminish as the SEC proposes new rules through 2026 and finalizes them by 2027.
Yin noted that institutional participation in the $33 billion tokenized RWA market remains limited compared to headline figures. Most activity centers on Treasury bills and private credit products, though the true potential extends to fundraising mechanisms and cap table transparency.
Plume is pursuing additional licenses, including Alternative Trading System and broker-dealer registrations, to build comprehensive on-chain capital market infrastructure. The company previously raised $20 million backed by Brevan Howard Digital, Huan Ventures and Galaxy Ventures.