Nasdaq, a top U.S. exchange for major technology firms, has formally asked the Securities and Exchange Commission (SEC) to amend its rules to allow tokenized stocks and ETFs to trade directly on its platform. This step, if approved, would make Nasdaq the first U.S. exchange to treat tokenized and traditional securities equally, offering both options on the same order book.
In its proposal, Nasdaq emphasized that tokenized securities must carry the same material rights, like voting and dividends, as traditional shares to qualify. Only those meeting this standard would be granted the same execution priority, clearing, and settlement treatment.
The exchange is not seeking special exemptions. Instead, it plans to ensure tokenized and traditional securities operate within the existing National Market System, maintaining surveillance standards, pricing transparency, and investor protections. If approved, Nasdaq aims to debut token-based settlement by Q3 2026, once the Depository Trust Company’s blockchain infrastructure is in place.
This move aligns with broader developments in the tokenized securities space. Coinbase is also seeking SEC approval to offer tokenized equities, and global banks like Bank of America and Citi are exploring asset tokenization. Meanwhile, SEC Commissioner Hester Peirce has reiterated that tokenized assets are still securities and must follow regulatory rules.
A tokenized security is a digital version of a traditional security, recorded on a blockchain instead of being held in a regular brokerage account. It doesn’t give investors direct ownership of the asset but represents its value digitally. Supporters believe tokenized securities could boost the market
Advocates say this proposal could significantly improve liquidity, reduce settlement time, and open up new investors to U.S. markets. Still, regulators and safety-conscious market advocates caution that proper legal frameworks must remain in place to protect investors and maintain market integrity.
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