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.