U.S. Regulation

Nasdaq Makes Push to Launch Trading of Tokenized Stocks

Nasdaq is working with U.S. regulators to introduce trading of tokenized securities, becoming the latest major financial player on Wall Street to double down on a boom in tokenization amid an easing of crypto regulations under the Trump administration. If approved, the move would mark the first instance of tokenized securities being allowed to trade on a major U.S. stock exchange, and also signify the most ambitious attempt yet by an exchange operator to bring blockchain-based settlement into the national market system.

Nasdaq on Monday filed a proposal with the U.S. Securities and Exchange Commission to tweak its rules to allow for trading of listed stocks and exchange-traded products on its main market in “either traditional digital or tokenized form.” The filing comes days after the SEC unveiled its rulemaking agenda, which included a potential amendment of its rules to allow for crypto to be traded on national securities exchanges and alternative trading systems. Investor demand for tokenized assets is rising globally. Proponents of the crypto industry have argued that tokenization can improve liquidity in the financial system.

Coinbase the largest U.S. crypto exchange, has also previously sought permission from the SEC to offer “tokenized equities” to its customers. Some major global banks, including Bank of America and Citigroup have said they could explore launching tokenized assets, including stablecoins. In its filing on Monday, Nasdaq said it believes the markets can use tokenization while “continuing to provide the benefits and protections of the national market system.”
“Wholesale exemptions from the national market system and related protections are neither necessary to achieve the goal of accommodating tokenization, nor are they in investors’ best interests,” Nasdaq said. In a post on his LinkedIn profile, Tal Cohen, president of Nasdaq, said the integration of tokenization and traditional markets offers “an extraordinary opportunity” to accelerate trade settlements, automate processes and improve efficiency.
However, the World Economic Forum, in a report released in May, pointed to a lack of sufficient secondary-market liquidity as well as the lack of a clear global standard as two major challenges for adoption while the World Federation of Exchanges voiced concern and called on regulators to crack down on the rush to tokenization.
Terron Gold

Recent Posts

SWIFT Launches Blockchain Ledger Pilot With 17 Banks for Tokenized Deposits

SWIFT has launched a new blockchain-based ledger pilot with 17 major banks to test how tokenized deposits can move across…

6 days ago

Sony Bank Wins U.S. Approval to Launch Dollar Stablecoin Trust Bank

Sony Bank, the banking arm of Sony Financial Group, has received conditional approval from the Office of the Comptroller…

6 days ago

PayPal USD Launches Natively on Polygon to Expand Global Stablecoin Payments

PayPal has expanded its stablecoin strategy by launching PayPal USD (PYUSD) natively on the Polygon blockchain, giving businesses direct access…

7 days ago

BONK Faces $20 Million Treasury Attack After Malicious Governance Proposal Passes

BONK, one of Solana's most recognizable memecoins, is facing a major governance crisis after an…

1 week ago

World Leaves Solana for Robinhood Chain in Major Bet on Tokenized Finance

World, the blockchain ecosystem co-founded by Sam Altman, is shifting its prediction market infrastructure from Solana to the…

1 week ago

BNB Chain Unveils New Layer 1 Built for AI Agent Trading, Targets 2027 Mainnet Launch

BNB Chain has revealed plans to build a brand-new Layer 1 blockchain specifically designed for the next generation…

1 week ago