Nasdaq’s Digital Assets Head Vows Quick Action on Tokenized Stocks

Nasdaq’s head of digital assets, Matt Savarese, has expressed the exchange’s readiness to address any inquiries from the SEC regarding its proposal for tokenized stocks, prioritizing this initiative.

“We’ll just move as fast as we can,” Savarese stated during a recent CNBC interview, responding to questions about the possibility of SEC approval this year.

He emphasized the importance of evaluating public feedback while swiftly addressing the SEC’s queries.

Savarese Asserts Nasdaq Isn’t Disrupting the System

The proposal, submitted on September 8, seeks to enable investors to trade stock tokens—digital versions of shares in publicly listed companies—on Nasdaq.

Savarese clarified that Nasdaq does not intend to disrupt traditional investment methods and aims to bring tokenization into mainstream finance responsibly, adhering to SEC regulations.

In a related context, Vlad Tenev, CEO of Robinhood, recently remarked that tokenization might ultimately transform the entire financial system.

Diverging Views on Tokenized Equities in the Crypto Sector

Savarese noted Nasdaq’s goal to lead innovation, referencing its historical shift from paper-based trading to digital platforms.

Tokenization of stocks has become a major topic within the cryptocurrency realm this year. On September 3, Mike Novogratz, CEO of Galaxy Digital, highlighted that his firm was the first Nasdaq-listed entity to tokenize its equity on a prominent blockchain, launching on Solana.

However, the idea has faced skepticism. Rob Hadick, a general partner at Dragonfly, noted that while tokenized equities might positively impact traditional markets, their benefits to the cryptocurrency industry may be limited, particularly if they engage layer-2 networks, potentially causing value leakage away from Ethereum.