A medallion guarantee is a signature verification used when transferring securities. It certifies that the signature authorizing the transfer is genuine — and critically, that the person signing actually has the authority and legal right to transfer those securities.
Banks, credit unions, and brokerage firms authorized under programs like STAMP, SEMP, and MSP can issue them. Getting one typically requires presenting in person with supporting documentation, which has historically made the process slow and frustrating.
Are They Still Necessary in 2025?
In a world moving rapidly toward digital verification, one might assume the medallion guarantee is obsolete. But the reality is more nuanced. They're still required in certain contexts — especially when:
- Transferring physical stock certificates
- Changing ownership of securities due to inheritance or divorce
- Moving assets between brokerages when account names don't match exactly
However, we are seeing a meaningful shift toward digital solutions. Unlike incumbent transfer agents who still rely on faxes and manual medallion workflows, modern platforms are replacing much of this friction with digital KYC, e-signatures, and automated identity verification — making transfers faster, cheaper, and more accessible.
At Efficiency, we've built our transfer agent infrastructure from the ground up to minimize reliance on outdated verification methods wherever regulations allow, while maintaining full compliance where they don't. The goal is simple: transfers that happen in minutes, not weeks.