Nasdaq, the leading U.S. exchange for tech companies, is pursuing the integration of blockchain technology into stock trading. Recently, it filed a proposal with the U.S. Securities and Exchange Commission to allow trading through tokenized securities alongside traditional stock trading. This could signify a pivotal change in Nasdaq’s operations.
Key Points:
- Nasdaq aims to enhance its stock trading options by offering tokenized securities.
- The proposal has been submitted to the SEC, marking a significant shift towards embracing tokenization.
- Tokenization has become a competitive aspect within the digital assets sector.
The aim is to permit customers to trade either through traditional methods or the newly proposed tokenized platform, maintaining priority for both systems. Nasdaq’s filing argues that markets can benefit from tokenization while still adhering to regulatory standards, ensuring assets are traded in regulated markets, such as national exchanges.
Nasdaq’s initiative aligns with broader industry movements. For instance, digital brokerage Robinhood has recently aimed to introduce stock tokens to European markets, enhancing access to a range of U.S. stocks and ETFs. The competition is intensifying as various crypto exchanges, including Kraken, also adopt tokenization strategies.
This potential change in stock trading practices could reshape the market, echoing similar innovations seen in other sectors and prompting regulatory engagement on tokenization.
“The migration of traditional equities to the blockchain can transform the nature of securities trading,” stated SEC Chairman Paul Atkins, capturing the essence of the digital transition.
