- If approved, Nasdaq will become the first U.S. stock exchange to trade tokenized securities on blockchain.
- SEC’s crypto reforms pave the way for Nasdaq’s tokenized securities launch.
Tal Cohen, the President of Nasdaq, announced that Nasdaq has filed a proposal with the U.S Securities and Exchange Commission (SEC) to allow trading of tokenized securities. These securities are stocks and exchange-traded products transformed into blockchain-based digital tokens.
If the SEC approves this request, Nasdaq could become the first major U.S stock exchange to embrace tokenized securities, integrating them in the national market system. According to Nasdaq, this could ensure that tokenized assets trade as conventional securities, protecting investors’ rights and the stability of the markets.
The planned integration could use Nasdaq’s current surveillance and order-handling systems, with settlement handled by the Depository Trust Company (DTC). The first token-settled trade would happen by Q3 2026, depending on DTC’s readiness.
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SEC’s Crypto Rule Overhaul Paves Way For Nasdaq’s Tokenized Securities Push
Paul Atkins, the SEC’s chairman, recently unveiled the exchange’s rulemaking agenda that could reshape cryptocurrency. Atkins says the agenda aims to clarify regulations on cryptocurrency sales, consider exemptions, and explore amendments that allow digital asset trading on the national securities exchange.
He emphasizes that the plan focuses on market efficiency, innovations, and investor protection, marking a significant shift from the Biden-era crackdown. This regulatory momentum directly connects to Nasdaq’s proposal to trade tokenized securities. The move also signals how upcoming SEC reforms could accelerate blockchain adoption in traditional finance.
