BitPath Plans Tokenized OTC Market Vehicle for Issuers

BitPath Holdings says it will tokenize its own equity and debt, launch a special purpose vehicle called Tokenize, and prepare to trade on the OTC Expert Market on Sept. 8, 2026. The move is aimed at creating a blockchain-based alternative for small OTC issuers and could set up a future token dividend for shareholders.

Why it matters: - BitPath is trying to build a blockchain-based path for small OTC issuers to package and trade equity and debt outside the current OTC Markets system. - The plan targets a market BitPath describes as having about $50 billion in trapped equity and debt capitalization. - The effort could give shareholders and other issuers a new way to represent securities electronically and trade them through tokenization.

What happened: - BitPath Holdings said it plans to tokenize its own common stock, preferred equity and convertible debt, along with securities of certain affiliates. - The company said the securities would be represented electronically on the blockchain rather than listed on or filed with OTC Markets. - BitPath said it will begin trading on the OTC Expert Market on Tuesday, Sept. 8, 2026. - The company set Friday, Sept. 25, 2026 as the record date for shareholders for a potential future dividend of Tokenize tokens. - BitPath also said it is establishing a website that will provide reporting in the same format used for OTC Markets disclosures.

The details: - BitPath said it spent several months reviewing OTC Markets listing requirements and compliance issues tied to SEC Rule 15c211. - The company said it has posted required financial information and disclosures on its own website free of charge and without registration. - BitPath said OTC Markets wanted payment to upload the same information into its systems. - The company said it received a formal explanation that described OTC Markets as a paywall monopoly provider of interdealer quotations and information exchange. - CEO Vik Grover said OTC Markets is obsolete in the era of blockchain and decentralized finance. - Grover said the company declined OTC Markets’ payment demands and will offer shareholders and the broader OTC market an alternative. - BitPath plans to establish a special purpose vehicle called Tokenize to hold securities of OTCM issuers. - Tokenize would issue tokens backed by the SPV using equity and debt obtained through token issuances to holders. - BitPath said those assets may include minority investments, majority control stakes, convertible debt, preferred stock and other equity-linked securities. - The company said Tokenize tokenomics are intended to include a high percentage token burn as trading activity occurs on the blockchain. - BitPath said issuers could still tokenize remaining equity or debt individually, remain public on OTCM, or pursue other options. - The company said it plans to open the reporting portal to other issuers and add them to a disclosure network with tiered service levels at a nominal entry-level expense. - BitPath said dealers will be able to review the data to support their own due diligence under Rule 15c211. - BitPath said the portal will be available free of charge without an investor login. - BitPath included a company website, BitPath Holdings, and a social media link to BitPath on X.

Between the lines: - BitPath is positioning tokenization as both a compliance workaround and a distribution strategy for small issuers that it says face friction in the OTC system. - The company’s criticism of OTC Markets suggests the announcement is as much a challenge to the current market structure as it is a product launch. - The token-burn design and references to other cryptocurrencies signal that BitPath wants Tokenize to look and trade more like a crypto asset than a traditional security wrapper.

What's next: - BitPath said it plans to move ahead with the OTC Expert Market trading date, the shareholder record date and the launch of Tokenize. - The company said it is inviting other issuers and dealers into the disclosure network as the portal expands. - BitPath also said advisors are exploring partnerships, licenses or a sale of its biotechnology platform, trials and data.

The bottom line: - BitPath is betting that tokenized securities and a free disclosure portal can replace part of the OTC Market stack for small issuers, but the plan still depends on execution, adoption and market acceptance.