Nasdaq Moves to Introduce Tokenized Stocks... Submits Proposal to U.S. SEC

Bloomberg and other media outlets reported on September 8 (local time) that Nasdaq, the U.S. stock exchange, is moving forward with the introduction of tokenized securities (stocks based on blockchain technology).

According to the reports, Nasdaq submitted a regulatory amendment to the U.S. Securities and Exchange Commission (SEC) on this day, seeking approval to allow stocks and exchange-traded funds (ETFs) listed on its exchange to be traded either in traditional digital form or as tokenized securities. Nasdaq is requesting regulatory approval to issue already-listed stocks or ETFs as blockchain-based digital securities and enable their trading on its platform.

In its proposal, Nasdaq pointed out that while some trading platforms in Europe already offer trading of tokenized U.S. stocks, these do not provide investors with actual shares, raising concerns. Nasdaq proposed that the tokenized securities it issues in the future will be held to higher standards, granting the same substantive rights and privileges as traditional securities. If these conditions are met, tokenized securities will be traded in the same manner and under the same rules as traditional securities; if not, they will be treated as separate financial products.

Nasdaq expects that by the end of the third quarter next year, U.S. investors will witness the first stock trades based on tokens.