Nasdaq Submits Application to SEC to List Tokenized Stocks

BlockBeats News, September 8th, according to market sources, Nasdaq has submitted a proposal to the U.S. Securities and Exchange Commission to amend its rules to allow the trading of securities listed on the exchange in traditional digital or tokenized form.

In documents obtained by Bloomberg, Nasdaq detailed the trading scheme for tokenized securities. The company proposed that if a tokenized security is deemed to have equivalent status to the underlying security and the same shareholder rights, trading should follow the same execution rules and filing requirements on Nasdaq and other exchanges.

The documents show that Nasdaq proposes that tokenized assets must be clearly labeled with attributes so that participants wishing to settle trades and the depositary trust companies responsible for settlement can execute instructions. The exchange also emphasizes that tokenized assets will receive the same order execution priority as traditional assets.

Bloomberg stated that this application far exceeds the scope of technical rule changes, as it touches on the fundamental logic of stock definition, issuance, and settlement—answers to these questions will determine whether tokenization technology will merely stop at the edge of cryptocurrency or truly integrate into Wall Street's financial infrastructure.

If approved, U.S. regulated exchanges may incorporate tokenized stocks into their systems, enabling cryptocurrency technology to directly interface with the most actively traded stocks globally. This experiment will help quell the intense debate over whether blockchain technology will fundamentally transform market infrastructure or merely serve as a novel tool driven by native cryptocurrency enterprises.