TSV LLC has completed the first trades of tokenized shares in Nasdaq-listed Canton Strategic Holdings (CNTN) under the U.S. Securities and Exchange Commission’s Innovation Exemption. The transactions, executed on November 4, 2026, involved issuer-sponsored common stock moving through a permissioned automated market maker pool on the Canton Network.

Five North, an existing shareholder, sold the tokenized shares to DRW Cumberland. Flowdesk Liquidity Solutions LLC supplied liquidity, while the Tradecraft protocol powered the pool. Fairmint TA LLC, an SEC-registered transfer agent, recorded ownership on the company’s onchain shareholder register linked to Five North’s verified Loop Wallet.

Transaction Details and Volume

Public transaction data showed four purchases totaling 14,460.66 CNTN shares for $30,296. The trades occurred between approximately 10:54 a.m. and 11:26 a.m. ET, with reported per-share prices ranging from about $2.0751 to $2.1086. Settlement was atomic, meaning the shares and payment transferred together or not at all.

Canton Strategic Holdings had agreed on October 29 to make its shares available on the venue. Because the tokenization was issuer-sponsored, the process bypassed the 30-day issuer notice-and-objection window that applies when an unaffiliated party creates tokens of another company’s stock.

Regulatory Framework and Operational Rules

The SEC issued the Innovation Exemption on September 17, 2026, allowing qualifying platforms to trade tokenized National Market System stocks through permissioned automated market maker pools under temporary, conditional relief from certain exchange registration requirements. TSV LLC filed its initial public notice on September 23 and an updated version on October 29 that named CNTN and Fairmint as transfer agent.

Access remains limited to verified participants who complete identity checks and sanctions screening. Approved wallet addresses are linked to approved holders, and smart contracts reject transfers from unapproved parties. The venue is designed for continuous availability subject to mandatory stoppages, maintenance, risk controls, and volume limits. Trading must halt when the underlying Nasdaq stock is halted.

Fairmint maintains the official ownership record, applies the issuer’s transfer controls, and ensures holders of the tokenized shares receive the same rights and privileges as those holding CNTN shares through traditional Nasdaq channels, including applicable voting and distribution entitlements. Production minting authority rests with the transfer agent rather than the venue.

Structure of the Trading Venue

The venue operates a concentrated-liquidity automated market maker in a design comparable to Uniswap v3. Prices are determined by the pool algorithm rather than a traditional order book. Paired assets include USDC issued by Circle and SBC issued by Brale on the Canton Network. A standard pool carries a baseline total swap fee of 0.30 percent, with 0.20 percent allocated to liquidity providers and 0.10 percent to the operator, though schedules may vary by pool.

Pool smart contracts are auditable, and the source code is publicly available. Required post-trade data is to be published. The Tradecraft software underwent independent review. TSV LLC is not registered with the SEC for these activities, the Commission has not passed on the merits of its disclosures, and the venue is not subject to Regulation NMS or fair-access rules.

Participants face risks including private key loss, smart-contract issues, network disruptions, low liquidity, potential price differences between the tokenized shares and the Nasdaq-listed stock outside conventional market hours, and the transfer agent’s authority to freeze or adjust positions when required by law. No fixed price band or venue-wide circuit breaker was in place at the time of the notice. Access is strictly permissioned.

The trades represent the first reported instance of a Nasdaq-listed company’s shares changing hands in tokenized form under the new exemption with an issuer-sponsored model and a registered transfer agent maintaining the official record.