Nasdaq is trying to shake up how we trade stocks in the United States. The company sent a big proposal to the SEC, the main financial watchdog. If the SEC says yes, it could totally change how people buy and sell company shares.
Nasdaq wants to bring something called “tokenized securities” to its trading floor. Think of tokenization as turning things like stocks or bonds into digital bits of code. These bits live on a special record called a Blockchain. This tech is booming worldwide. It promises to make trading smoother and easier.
One cool thing about tokenization? It could allow trading 24 hours a day. Traditional stock markets usually shut down at night and on holidays. Tokenized assets also make it easier for people to own tiny pieces of expensive things. This means more investors can join in, even from other countries.
If the SEC approves Nasdaq’s plan, it would be a huge first. Nasdaq would be the first major U.S. stock exchange to let people trade tokenized stocks and other investment products. These digital versions would come with all the same rights as regular shares, like voting power.
Nasdaq Leads with Blockchain Tech
Nasdaq put its proposal forward on a Monday. It wants to update its rulebook. This includes changing how it defines a “security.” The goal is to let tokenized stocks trade on its platform. They would follow the exact same trading rules as regular stocks.
Nasdaq told the SEC that the market can welcome tokenization. It believes the market can still keep all the good parts and protections of our current system. This was reported by CoinDesk.
The company also promised that tokenized stocks would have the same main rights as traditional ones. This includes voting rights and how trades are settled. All ownership and trades would be recorded on a digital ledger. This new system offers better ways to track who owns what.
The Depository Trust Company (DTC) would handle settling these new trades. DTC is building the necessary system now. Nasdaq thinks that if the SEC agrees and DTC finishes its work, U.S. investors could see the first tokenized trades by late 2026.
Other big names in finance are already getting into tokenization. Companies like BlackRock, Franklin Templeton, and KKR have started using it. Trading apps like Robinhood now offer tokenized stocks in Europe. Even crypto exchanges such as Kraken, Gemini, and Bybit are following suit. But Nasdaq’s plan is a groundbreaking step for a regulated exchange of its size.
Tokenization Knocks on Wall Street’s Door
This big move comes as financial rules are becoming more flexible. The new head of the SEC, Paul Atkins, is making tokenization a top priority.
Atkins compared this shift to how music moved from vinyl records to digital files. He said putting securities on a Blockchain could reshape the stock market. It could bring new ways to issue, trade, own, and use investments. CoinDesk shared these statements.
Not everyone is cheering, though. Some critics have raised red flags. Citadel Securities, for example, warned about possible big risks to the financial system. They say clear rules are needed to prevent people from finding loopholes. Bloomberg reported on these worries. SEC Commissioner Hester Peirce also stressed that tokenized securities must follow current laws. Nasdaq says its proposal does exactly that.
Nasdaq also worries about tokenized shares being traded without proper permission on foreign platforms. In Europe, some investors can buy digital versions of U.S. stocks. But they don’t actually own a piece of the company. Nasdaq wants to make sure companies control where and how their shares are traded.
This proposal needs the SEC’s approval. It also needs time for the public to share their thoughts. It could change how financial markets work for good. It might even put Blockchain technology right at the heart of Wall Street. For now, the talk continues: Will tokenization really change everything, or will it stay a small part of the market? Nasdaq is clearly aiming to be a leader in this financial race.
WARNING: Blaze Trends offers informative and educational content on various topics, including cryptocurrencies, AI, technology, and regulations. We do not provide financial advice. Investments in crypto assets are high-risk and may not be suitable for everyone. Research, consult an expert, and verify applicable legislation before investing. You could lose all your capital.