BackPack:- The surge in tokenized equities has been one of the most visible trends across Web3 this year. The market has already crossed $1 billion, as blockchain networks and exchanges increasingly offer tokenized versions of stocks that trade on traditional exchanges.
Yet most of the founders and analysts have shared a common limitation of this. Tokenized stocks simply represent shares that are already listed in public markets. In other words, the blockchain layer comes after the company has already gone public.
Now, some companies are trying to push the idea further and move the entire process onchain by making IPOs native or on-chain first.
Backpack Exchange, founded by Armani Ferrante, is beginning to explore whether the IPO process itself can move onto blockchain rails. The exchange is expanding its U.S. presence after it recently appointed former CFTC chairman Mark Wetjen to lead its US diviision.
It is working with Superstate and its on-chain equity platform Opening Bell to experiment with what it calls “on-chain IPOs.”
We're excited to welcome Mark Wetjen as President of Backpack US.
Mark previously served as CFTC Commissioner & Acting Chairman and Head of Global Public Policy at DTCC, and was among the first U.S. regulators to advocate for clear regulatory frameworks and market infrastructure… pic.twitter.com/3cYa4cwdvB
— Backpack 🎒 (@Backpack) March 5, 2026
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How Is Backpack Making On-Chain IPOs Possible
The ambition is straightforward but significant. Instead of tokenizing shares after they begin trading, the model aims to bring the issuance of those shares directly onto blockchain infrastructure. If that vision works, blockchain would no longer just host tokenized versions of existing assets. It could become part of the infrastructure through which companies actually raise capital in public markets.
It would be a significant shift by shifting from tokenizing markets that already exist to building entirely new ones on-chain.
Making IPOs work on blockchain rails requires far more than simply turning shares into tokens. It means rethinking how shares are issued, recorded, and distributed in the first place. That is the direction Backpack Exchange appears to be exploring.
The exchange is working with Superstate, the financial infrastructure firm founded by Robert Leshner, known for launching Compound Labs. Superstate has been building an on-chain equity framework called Opening Bell, designed to bring parts of the public-market infrastructure onto blockchain networks.
The idea is relatively simple in theory but complex in execution. Instead of issuing shares through the conventional chain of brokers, clearinghouses, and transfer agents, companies could issue shares through a system where ownership records are maintained on blockchain infrastructure. In this estimated BackPack setup, the blockchain effectively becomes part of the official record of who owns what.
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10% of IPOs Could Mean $10B On-Chain : Estimate
Backpack’s role in this model is likely to act as the distribution layer. Through the exchange, users could sign up for potential allocations in upcoming IPOs. If selected, their ownership would be reflected through on-chain records tied to the newly issued shares. Rather than tokenizing stocks that are already trading in public markets, the goal is to bring the issuance process itself onto blockchain rails.
That distinction matters. Global equity markets are worth roughly $150 trillion. However, the annual IPO market or the segment Backpack is targeting with on-chain offerings typically ranges between $50 billion and $150 billion a year.
On-chain IPOs cannot move the entire capital market on-chain immediately. But even capturing a small share of that flow would represent billions of dollars moving onto blockchain rails. For instance, according to an estimate, if just 10% of IPOs move on-chain, blockchain could handle $10B+ in capital formation annually.
For now, the concept is still developing. But if projects like Backpack’s gain traction, they could begin shifting the whole tokenization narrative in web3.
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Sneha Agrawal 
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