Nasdaq’s filing asks the SEC to allow tokenized stocks to trade side-by-side with traditional securities, applying existing securities rules while using blockchain to speed settlements and increase transparency.
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Nasdaq filed a rule change with the SEC to list tokenized stocks alongside traditional shares.
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Tokenized stocks aim to use blockchain for faster settlement, clearer audit trails and identical shareholder rights.
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The SEC treats tokenized stocks as securities, meaning existing regulatory frameworks and investor protections apply.
Nasdaq tokenized stocks filing: Nasdaq asks SEC to list blockchain-based shares alongside traditional stocks — learn implications and next steps. Read now.
Nasdaq has filed with the SEC for approval to list tokenized stocks on its platform, aiming to integrate digital assets into traditional markets.
What are Nasdaq tokenized stocks?
Nasdaq tokenized stocks are digital representations of listed equity issued and traded on distributed ledgers, designed to mirror traditional shares while using blockchain to shorten settlement times and provide immutable records. They retain shareholder rights and remain subject to securities regulation.
How would tokenized stocks trade on Nasdaq?
Nasdaq’s proposed rule change would permit tokenized securities to trade alongside conventional listings with the same order priority. Tokenized shares would be labeled for transparency and routed through Nasdaq’s existing market infrastructure, while settlement and custody could leverage blockchain-based processes.
Why does the SEC classify tokenized stocks as securities?
The SEC has clarified that tokenized stocks meet the legal tests for securities, meaning they will follow the same disclosure, reporting and market conduct rules as traditional shares. This ensures investor protections and market integrity remain consistent across both formats.
How will this affect market infrastructure and investors?
Nasdaq expects tokenized stocks to streamline settlement, reducing counterparty and operational risk. For investors, this could mean faster trade finality, clearer provenance of holdings and potentially extended trading hours or access models. Exchanges and custodians will need to adapt clearing and custody workflows to integrate tokenized instruments.
Who is leading early tokenization efforts?
Galaxy Digital is among the first firms to tokenize its common stock on Nasdaq, illustrating private-sector interest. Nasdaq executives, including Chuck Mack, Senior Vice President of North American Markets, emphasize that the proposal seeks to integrate digital assets without disrupting existing investor protections.
What are the risks and regulatory guardrails?
Tokenization introduces operational, cybersecurity and custody considerations. Regulators, led by the SEC, will apply securities law, disclosure requirements and market surveillance to tokenized stocks. Market participants must ensure resilient infrastructure, clear reconciliation processes and robust investor communications.
Frequently Asked Questions
How soon could Nasdaq start listing tokenized stocks?
Timing depends on SEC approval and operational readiness. If the SEC approves the proposed rule change and market participants finalize custody and clearing workflows, listings could follow within months rather than years.
Will retail investors have access to tokenized stocks?
Access will likely mirror conventional market access. Retail participation depends on broker-dealer offerings, custody solutions, and whether trading hours or minimums are adjusted for tokenized instruments.
Key Takeaways
- Regulatory parity: Tokenized stocks are treated as securities and must follow the same regulatory framework as traditional shares.
- Operational efficiency: Blockchain can reduce settlement times and improve auditability, but infrastructure must evolve to support custody and clearing.
- Integration approach: Nasdaq aims to trade tokenized and traditional shares side-by-side with labeling and equal order priority for market continuity.
Conclusion
Nasdaq’s filing with the SEC represents a methodical step toward integrating digital asset technology into public markets, balancing innovation with the regulatory safeguards that govern securities. As firms like Galaxy Digital pioneer issuance and Nasdaq refines market rules, investors and intermediaries should prepare operationally for a hybrid trading landscape. Monitor COINOTAG for updates as the SEC reviews this proposal.
