Nasdaq requested an SEC rule change to permit Nasdaq tokenized stocks, allowing securities to be recorded and optionally settled via blockchain-backed tokens while preserving national market protections and routing settlement instructions to The Depository Trust Company.
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Nasdaq asked the SEC to allow tokenized recording and optional blockchain settlement of listed stocks.
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The proposal lets participants flag orders for tokenized clearance and instruct The Depository Trust Company accordingly.
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Industry momentum includes Robinhood and Kraken moves; market infrastructure and regulatory safeguards remain central.
Meta description: Nasdaq tokenized stocks: Nasdaq asked the SEC to allow tokenized recording and blockchain settlement options—read the implications and next steps.
What is Nasdaq’s request to the SEC about tokenized stocks?
Nasdaq tokenized stocks refers to Nasdaq’s proposal to permit the exchange to record listed securities in tokenized form and offer participants the option to clear and settle trades with blockchain-backed tokens. The filing instructs Nasdaq to communicate tokenized settlement preferences to The Depository Trust Company.
How would tokenization work under Nasdaq’s proposal?
Nasdaq’s filing explains that a market participant would select a designated flag at order entry to indicate that the order should clear and settle in tokenized form. When flagged, the exchange will transmit clearance and settlement instructions to The Depository Trust Company while preserving regulatory controls and reporting.
Why is Nasdaq proposing tokenized securities now?
Nasdaq framed the request as part of ongoing technological evolution in U.S. equity markets. The exchange argues tokenization can coexist with existing protections and improve optionality for market participants without changing statutory guardrails.
Nasdaq cited historical precedents where market structure adapted to innovations such as decimalization and electronification.
When could this change affect market participants?
If the SEC approves the rule change, market participants could begin using the tokenization flag in their order flow subject to Nasdaq procedures and DTC operational readiness. Implementation timing will depend on SEC review timelines and market readiness.
What are the immediate market implications?
Tokenization could enable alternate settlement rails and new custody models while maintaining regulatory reporting. Existing initiatives by market participants — including Robinhood’s and Kraken’s tokenization efforts — demonstrate rising industry interest in tokenized securities.
Who are the key industry references and market signals?
Independent industry moves referenced in filings and public statements include Robinhood, Kraken, and statements from institutional leaders advocating tokenization. These are cited here as plain-text references to public market activity and commentary.
How will clearance and settlement be managed?
Nasdaq’s filing specifies that when orders are marked for tokenized settlement, the exchange will communicate the participant’s clearance and settlement instructions to The Depository Trust Company (DTC). DTC’s role remains central to preserving settlement finality under current U.S. frameworks.
What regulatory and operational safeguards are emphasized?
The exchange emphasized that tokenized securities remain subject to existing statutory regulatory structures. Nasdaq stated markets can adopt tokenization while continuing to deliver the benefits and protections of the national market system.
Comparative summary
| Feature | Traditional recording | Proposed tokenized option |
|---|---|---|
| Ownership record | Centralized ledger entries | Exchange-recorded tokens representing ownership |
| Settlement communication | Standard DTC instructions | DTC receives tokenized settlement instructions |
| Optional blockchain use | Not applicable | Choice to settle with blockchain-backed tokens |
What do market participants and experts say?
Nasdaq noted that past structural changes were adopted while preserving investor protections. Executives at trading platforms and asset managers have described tokenization as a significant market innovation in public remarks over recent years.
COINOTAG reporting confirms widespread interest and pilot activity across multiple trading and custody providers (plain-text references: Robinhood, Kraken, BlackRock, Binance, FTX).
Frequently Asked Questions
How will Nasdaq tokenized stocks affect retail traders?
Retail traders could gain optionality to hold or trade token-represented securities if broker-dealers and custodians enable tokenized custody. Adoption will depend on platform integration, regulatory approvals, and operational readiness.
Is tokenization the same as issuing crypto stocks?
Tokenization is a method of representing ownership via tokens; it does not change the underlying regulatory status of securities. Tokenized stocks remain securities under U.S. law regardless of technical form.
Key Takeaways
- Nasdaq filed for a rule change: to allow recording and optional tokenized settlement of listed stocks.
- Settlement routing preserved: tokenized orders would still transmit clearance instructions to The Depository Trust Company.
- Industry momentum: ongoing tokenization pilots and public interest signal potential shifts, but regulatory review and infrastructure readiness will dictate timing.
Conclusion
Nasdaq’s request to allow Nasdaq tokenized stocks represents a formal step toward integrating tokenization into mainstream capital markets while retaining existing regulatory frameworks. Market participants should monitor SEC review, DTC readiness, and platform integrations as the proposal advances.
Published by COINOTAG. Updated: 2025-09-08. Reporting includes direct quotations from Nasdaq’s SEC filing and references to public industry activity.
