Nasdaq has asked the SEC to allow regulated U.S. exchanges to list and trade tokenized stocks, seeking rule changes so tokenized shares trade under the same execution and settlement rules as traditional securities, potentially increasing liquidity for blockchain-based securities.
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Nasdaq seeks SEC approval to list tokenized stocks on U.S. exchanges.
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Proposal requests parity in execution, documentation, and settlement between tokenized and traditional shares.
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Nasdaq’s filing would require clear labeling and coordination with clearing agents such as the Depository Trust Company (DTC).
Meta description: Tokenized stocks: Nasdaq asks the SEC to allow exchanges to list tokenized stocks under existing rules — learn what changes are proposed and next steps.
What is Nasdaq proposing for tokenized stocks?
Nasdaq is proposing that U.S. regulated exchanges be permitted to list and trade tokenized stocks under the same execution and documentation framework as traditional securities, provided the tokenized versions are deemed equivalent. The change targets definitions and settlement processes to integrate tokenized shares into existing market infrastructure.
How would the SEC rule change affect trading and settlement?
Nasdaq’s filing asks the SEC to amend rules including the definition of a security so tokenized shares can be processed within current clearing and settlement workflows. The proposal emphasizes clear labeling for tokenized assets and coordination with clearing agents such as the Depository Trust Company to ensure operational compatibility.
Nasdaq has filed for a rule change with the SEC that would allow regulated exchanges in the US to trade tokenized stocks.
Nasdaq, the world’s second-largest stock exchange by market capitalization, is seeking regulatory approval from the US securities regulator to list tokenized stocks.
Nasdaq filed a request Monday with the US Securities and Exchange Commission (SEC) asking for a rule change that would allow the company to list tokenized stocks.
The exchange operator specifically asked to amend certain rules, including the definition of a security, to trade tokenized stocks under the same execution and documentation rules as traditional securities, provided the tokenized versions are deemed equivalent.
According to a report by Bloomberg, Nasdaq’s request with the SEC would go beyond a technical rule change as it relates to the foundations of how stocks are issued and settled.
Why should tokenized assets be clearly labeled?
Clear labeling ensures market participants, trading venues, and clearinghouses can identify tokenized equivalents and apply correct processing rules. Nasdaq’s proposal stresses labeling so entities like the Depository Trust Company process trades without ambiguity and maintain existing priority and execution practices.
Nasdaq also stated that tokenized assets would receive the same priority in execution as traditional stocks on the exchange. If approved, U.S.-regulated exchanges, including Nasdaq, would be authorized to list tokenized shares, a move that could boost liquidity for blockchain-based versions of traditional securities.
An excerpt from Nasdaq’s proposal to amend the exchange’s rules to enable the trading of securities in tokenized form. Source: Nasdaq
How could markets and investors be impacted?
If adopted, the rule change could expand market access for tokenized shares, potentially improving liquidity and enabling new on-chain settlement workflows while preserving investor protections embedded in current rules. Implementation would depend on operational readiness of clearinghouses and custodial arrangements for tokenized securities.
Frequently Asked Questions
What are tokenized stocks and how do they differ from digital assets?
Tokenized stocks are blockchain representations of traditional equity where each token corresponds to a share or right in an issuer. Unlike cryptocurrencies, tokenized stocks map to existing securities and are intended to replicate legal and economic rights of traditional shares.
When could tokenized shares start trading on U.S. exchanges?
Trading could begin only after the SEC completes its review and approves any required rule changes. The timeline depends on regulatory assessment, public comment periods, and readiness of market infrastructure such as clearing and custody.
Key Takeaways
- Regulatory request: Nasdaq has filed with the SEC to permit listing of tokenized stocks on regulated U.S. exchanges.
- Operational parity: The proposal seeks to treat tokenized stocks under existing execution and settlement rules when equivalence is established.
- Next steps: SEC review, industry coordination with clearinghouses, and readiness of custody and settlement systems will determine implementation timing.
Conclusion
Nasdaq’s filing marks a significant step toward integrating tokenized stocks into regulated U.S. markets, proposing rule amendments to align tokenized and traditional securities under common execution and settlement frameworks. Market participants and regulators will now evaluate operational, legal, and custody implications as the SEC reviews the proposal. COINOTAG will continue to monitor developments and report updates.
Author: COINOTAG
Published: 2025-09-08
Updated: 2025-09-08
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