Nasdaq Seeks SEC Approval for Tokenized Securities Trading

Nasdaq Inc. has submitted a request to the U.S. Securities and Exchange Commission (SEC) to allow the trading of tokenized securities on its stock exchange platform. The proposal would enable member firms and investors to tokenize the stocks and exchange-traded products (ETPs) traded on Nasdaq.

According to Nasdaq, the tokenized assets would be managed by the Depository Trust Corporation and maintain the same identification numbers and rights as traditional shares. Chuck Mack, Senior Vice President of Nasdaq North American Markets, stated that the goal is to integrate digital assets into existing infrastructure, fostering financial innovation while maintaining market stability and investor protection.

All shares, whether tokenized or in traditional digital format, would be traded under the same order entry and execution rules. Nasdaq noted that blockchain technology could improve efficiency through faster settlements and clearer audit trails.

This proposal follows similar initiatives by other companies, such as Robinhood, which launched tokenized stocks for European investors. Meanwhile, regulatory bodies, including the World Federation of Exchanges (WFE) and the European Securities and Markets Authority (ESMA), have issued warnings about potential risks to investors and market integrity.

Nasdaq shares declined 0.02% after the market closed at $95.01, following a 1.64% increase during the regular trading session.