Nasdaq Pushes SEC for Approval to Trade Tokenized Stocks

Nasdaq is making a major move toward bringing tokenized stocks into regulated U.S. markets, filing a request with the SEC to allow exchanges to trade blockchain-based versions of traditional equities.

• Proposed changes include clearly labeling tokenized assets for proper clearing and settlement.
• If approved, U.S. exchanges could offer tokenized shares with equal execution priority to traditional stocks.
• Nasdaq aims to prevent “siloed venues” and ensure tokenized assets trade under regulated market structures.
• Concerns were raised about European platforms offering exposure to tokenized U.S. equities without granting full shareholder rights.

Nasdaq, the world’s second-largest stock exchange, has asked the U.S. Securities and Exchange Commission for a rule change that would allow regulated exchanges to list and trade tokenized stocks. In its filing, Nasdaq emphasized that tokenized assets should be treated as equivalent to traditional securities, provided they represent the same ownership rights.

A key part of the proposal is labeling tokenized assets clearly, ensuring that participants like the Depository Trust Company can process trades properly. Nasdaq also highlighted that tokenized shares would be executed with the same priority as traditional stocks, reinforcing their equal standing within the exchange system.

The filing reflects Nasdaq’s broader strategy to keep tokenized trading within regulated environments. The exchange expressed concern about “siloed venues” — unregulated platforms that offer tokenized U.S. equities without providing investors the full benefits of actual share ownership, such as voting rights. According to Nasdaq, such practices create risks and fragment liquidity, whereas regulated exchanges can ensure transparency and investor protection.

Nasdaq also pointed out the rise of European platforms offering tokenized versions of U.S. stocks and ETFs. While these products are popular in regions with limited access to American equities, Nasdaq warns they do not provide the same rights as holding traditional shares. The exchange argues that tokenization must be integrated into the established securities market structure, ensuring compliance with national securities laws and alignment with the U.S. financial system.

Final Thought

Nasdaq’s request marks a pivotal step toward mainstream adoption of tokenized securities. If approved, it could set the stage for regulated U.S. markets to lead in tokenization, offering investors both innovation and protection in the evolving landscape of real-world asset trading.