Nasdaq Proposes SEC Rule for Tokenized Stock Trading

Nasdaq Proposes SEC Rule for Tokenized Stock Trading

Nasdaq filed a proposal with the SEC on September 8, 2025, to allow tokenized stock trading on its primary exchange, a significant step in its blockchain expansion.

This proposal signals Nasdaqโ€™s push toward integrating blockchain in traditional finance, potentially influencing regulatory landscapes and boosting blockchain-based trading innovations.

Nasdaqโ€™s proposal for tokenized stock trading could modernize securities markets with blockchain technology, providing investors the option to hold equities in tokenized or traditional form.

This major U.S. tokenization effort differs from European models by focusing on regulatory compliance while integrating digital assets, potentially enhancing the financial system.

Nasdaqโ€™s Push for Tokenized Equities Trading with SEC

Nasdaq, led by Matt Savarese, has filed a proposal with the SEC to permit tokenized equities trading. This move intends to expand Nasdaqโ€™s offerings by integrating blockchain technology, aiming to modernize and streamline securities trading.

Nasdaqโ€™s initiative is focused on providing investors with the choice to hold equities in either tokenized or traditional form. This transformative action involves close collaboration with regulatory bodies to ensure compliance and optimal market functionality.

Blockchain Integration for Market Efficiency Gains

The proposal highlights Nasdaqโ€™s plan to leverage blockchain for improved market efficiency. Regulators are currently reviewing the framework, which, if approved, could impact the conventional trading landscape and lead to increased market flexibility and access.

Expert analysis suggests potential benefits include streamlined settlement processes, cost reductions, and market accessibility. The proposal may pave the way for further innovations, aligning with broader trends towards digitized finance under regulatory scrutiny.

Matt Savarese, Head of Digital Assets at Nasdaq, stated: โ€œWe filed a rule filing with the SEC that really allows our investors and members choice around how to settle and hold those assets and represent them. So either you can represent them in tokenized form now on blockchain or you can hold them in its traditional form.โ€

Nasdaqโ€™s Proposal: A Major U.S. Tokenization Effort

Previous attempts at tokenizing equities have emerged, though Nasdaqโ€™s proposal marks a substantial U.S. initiative. The approach differs from European models by promoting regulatory compliance and maintaining shareholder rights securely within the blockchain framework.

According to Kanalcoin experts, the integration of tokenized securities within Nasdaqโ€™s platform could stimulate further adoption of digital asset technologies. This evolution aligns with market trends anticipating broader acceptance of blockchain to enhance financial systems.

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