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Tokenized Securities – The Next Evolution

Continental is pleased to announce that in the near term, several of its issuers will begin issuing securities in tokenized form as part of new digital market initiatives. Continental will support this initiative by partnering with leading tokenization platforms, each offering full blockchain connectivity for the processing and trading of digital securities. This marks an important milestone for both Continental and the broader evolution of capital markets.

Tokenized securities represent traditional securities, such as common stock or other equity interests, in digital form on a blockchain, often referred to as being “on-chain.” These securities may be issued and tracked on widely used blockchain networks such as Ethereum or Solana. Rather than ownership being recorded solely through conventional book entry systems, positions may also be reflected on a distributed ledger and accessed through secure digital “wallets,” which function similarly to brokerage accounts within a blockchain-based environment. This model leverages elements of the broader digital asset ecosystem while maintaining the core attributes of traditional securities. It also introduces enhanced transparency, streamlined transferability, and the potential for more efficient settlement processes. While the underlying securities and investor protections remain grounded in existing legal and regulatory frameworks, tokenization introduces a modern infrastructure layer that can improve how securities are issued, recorded, and transferred. Continental will continue to serve as the official transfer agent and registrar, maintaining the issuer’s record of ownership, while coordinating with tokenization platforms that enable on-chain functionality. We believe this development represents a meaningful step forward in aligning traditional market infrastructure with emerging technologies, and we look forward to supporting our clients as they thoughtfully explore these new capabilities.

Continental is proud to be at the forefront of this emerging area, working closely with leading tokenization platforms to bring these solutions to market. As an early leader in advancing tokenized securities within the transfer agent space, we are committed to providing our clients with innovative solutions that align with evolving market practices, while maintaining the highest standards of operational integrity, regulatory compliance, and investor protection.

Written by Michael Mullings, Chief Compliance Officer & Corporate Secretary

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