Nasdaq files with the US Securities and Exchange Commission for approval to trade its first "tokenized securities" on the US market.
Nasdaq has filed with the U.S. Securities and Exchange Commission (SEC) to allow the trading of "tokenized securities," including stocks and mutual funds, in tokenized form for the first time in the U.S. market, citing the potential for improved settlement efficiency.
On September 9, 2568 at 03.27:XNUMX p.m., Reuters reported that Nasdaq is partnering with US regulators to allow tokenized securities to be traded on the exchange. This marks a significant step for Wall Street in pushing blockchain technology into mainstream capital markets, following the Trump administration's relaxation of crypto regulations. If approved, it would mark the first time tokenized securities would be allowed to trade on a U.S. exchange and the most serious attempt by a major exchange to integrate blockchain-based settlements.
Nasdaq filed a proposed rule amendment with the U.S. Securities and Exchange Commission (SEC) on Monday, proposing that it allow its listed stocks and funds to be traded both traditionally and as tokens. The move comes just days after the SEC unveiled a new rulemaking agenda, which includes considering rule amendments to allow crypto assets to be traded on exchanges and alternative trading platforms.
Demand for tokenized assets is growing globally, with crypto advocates pointing to the potential for increased liquidity in the financial system. Coinbase, the largest US cryptocurrency exchange, has recently filed with the Securities and Exchange Commission (SEC) to allow customers to trade “tokenized stocks,” while major banks like Bank of America and Citigroup have also expressed interest in developing tokens for financial assets, including stablecoins.
Nasdaq stated in a document that the exchange could utilize tokenization without exempting it from U.S. capital markets regulations, while maintaining existing investor protections. Nasdaq President Tal Cohen posted on LinkedIn that integrating traditional markets with tokenization presents a significant opportunity to accelerate automated settlement and improve trading efficiency.
However, international organizations such as the World Economic Forum point to challenges stemming from insufficient liquidity in secondary markets and a lack of clear global standards, while the World Federation of Exchanges warns that accelerated tokenization could pose systemic risks without strict regulation. SEC Commissioner Hester Peirce, who has often expressed a positive stance on cryptocurrencies, emphasized that tokenization cannot circumvent existing securities laws.
Nasdaq further stated that if the proposal is approved, investors will be able to buy shares on Nasdaq and choose to have them settled in token form, without affecting how orders are executed, priced or reported. Trading of tokenized securities could occur as early as the third quarter of 3, if the Depository Trust Company infrastructure is ready as planned.
Industry experts, such as RedStone co-founder Marcin Kazmierczak, see the time as ripe for serious tokenization, as the regulatory environment becomes more favorable, blockchain technology advances, and financial institutions become more interested in getting involved.
refer : reuters.com
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