The Nasdaq stock exchange is prioritizing the SEC’s approval for its proposal to offer tokenized equities, as highlighted by Nasdaq’s Digital Assets Chief, Matt Savarese. “We’ll just move as fast as we can,” Savarese mentioned during a CNBC interview when asked about the potential for SEC approval this year.

He noted that Nasdaq intends to carefully address public comments and respond to SEC inquiries promptly, expressing a hope to collaborate closely with the SEC.

Savarese Reassures on System Integrity

The proposal, submitted on September 8, aims to permit investors to trade tokenized assets representing shares in publicly listed companies. Savarese made it clear that Nasdaq is not attempting to disrupt the current system, indicating they want to ensure a smooth transition towards tokenization for all participants.

“We’re not looking at upending the system; we want everyone to come along for that ride and bring tokenization more into the mainstream,” he asserted. He emphasized the importance of adhering to SEC guidelines throughout this process.

Just recently, Robinhood’s CEO Vlad Tenev articulated that tokenization could have a transformative impact on the financial sector.

Industry Responses to Tokenized Stocks

Savarese indicated that Nasdaq seeks to lead innovation in the marketplace, having been the first to move from paper trading to electronic transactions. Tokenizing stocks has emerged as a pivotal conversation within the crypto sector this year.

On September 3, Galaxy Digital’s CEO Mike Novogratz reported that their company was the first to tokenize its equity on a major blockchain, specifically on the Solana network.

However, opinions in the crypto community remain divided regarding the advantages of tokenized equities. On October 1, Dragonfly’s Rob Hadick pointed out that while tokenized stocks could benefit traditional markets, their impact on the crypto space might not be as significant as some have suggested.