Nasdaq Pushes SEC Approval to Tokenize Stocks on Blockchain

The race to bring real-world assets onto blockchain just got a major boost. Nasdaq, the second-largest stock exchange in the world, has officially filed with the U.S. Securities and Exchange Commission (SEC) to allow the trading of tokenized securities.

This step could merge traditional finance with blockchain technology, opening new doors for investors while ensuring the same protections and rights as conventional stock ownership.

If approved, it would mark one of the biggest endorsements yet for tokenization in mainstream finance.

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Key Takeaways

1. Nasdaq has filed with the SEC to approve tokenized stock trading.

2. Tokenization could shorten settlement times and modernize equities.

3. Investors would retain full rights, including dividends and voting.

Why Nasdaq Wants to Tokenize Stocks

Nasdaq’s filing highlights its goal of merging blockchain efficiency with the established equity market.

According to President Tal Cohen, tokenized securities could simplify how markets operate, offering faster settlements, improved transparency, and more modern mechanisms for processes like proxy voting.

For investors, the key reassurance is that tokenized stocks would carry the same rights and protections as regular shares. That means dividends, liquidation claims, and voting power would remain intact.

Nasdaq emphasized that trading tokenized securities would be treated the same way as traditional equity trading, without losing any priority or protections in the process.

The Depository Trust Company (DTC) would handle clearing and settlement, ensuring that transactions remain secure and regulated.

This is crucial, as regulatory compliance has long been one of the biggest hurdles for bringing blockchain into mainstream finance.

By positioning tokenization within a familiar framework, Nasdaq is signaling that blockchain can enhance existing systems rather than replace them outright.

The proposal also comes as global interest in asset tokenization grows. With more financial institutions experimenting in this space, Nasdaq’s move adds legitimacy and weight to the idea that blockchain could play a permanent role in the future of markets.

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The Rising Trend of Asset Tokenization

Asset tokenization is one of the fastest-growing segments in crypto and finance. According to recent data, the total value of tokenized assets more than doubled over the past year, jumping from $12.4 billion to $26.3 billion.

While treasuries and private credit dominate much of this growth, equities are now gaining traction.

Companies like Fidelity have already launched tokenized funds, and digital-first brokerages like Robinhood are experimenting with stock tokens for European customers.

Several crypto exchanges, including Kraken and Gemini, also provide access to tokenized assets. But Nasdaq’s involvement is particularly significant.

As home to the world’s top technology giants, its embrace of tokenization signals that the innovation is no longer confined to niche markets.

Tokenization offers several potential benefits:

• Speed: Settlement times could shrink from days to near-instant.

• Transparency: Blockchain’s ledger creates a permanent, auditable record of ownership.

• Accessibility: Tokenization could eventually allow fractional ownership of high-value assets.

Despite the optimism, challenges remain. Market volatility, cybersecurity risks, and regulatory scrutiny all weigh heavily on tokenized assets.

Still, the surge in adoption shows that traditional finance players are keen to experiment, and Nasdaq’s filing could accelerate mainstream acceptance.

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What SEC Approval Could Mean for Markets

If the SEC greenlights Nasdaq’s plan, the decision could reshape how stocks are traded in the United States.

Investors might soon have the option to buy equities in either traditional form or as tokenized assets on blockchain rails. Importantly, both options would be given equal treatment in terms of execution and priority.

This flexibility could make markets more efficient. Tokenized assets could modernize everything from recordkeeping to post-trade settlement.

They may even pave the way for entirely new financial products, such as tokenized exchange-traded funds (ETFs) or hybrid securities blending traditional and digital features.

Regulators themselves appear increasingly open to tokenization. SEC Chairman Paul Atkins recently emphasized that the movement of securities on-chain has the potential to remodel entire aspects of the market.

He compared the shift to the migration from analog audio to digital formats, suggesting that blockchain could become the next leap forward in financial infrastructure.

The global implications are just as important. With other exchanges and governments exploring similar paths, Nasdaq’s plan could spark a competitive race to dominate the tokenized securities market.

That competition may drive innovation but also increase pressure on regulators to adapt quickly to an evolving financial landscape.

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Conclusion

Nasdaq’s bid to tokenize stocks through SEC approval highlights a major turning point in global finance. If successful, the plan could bridge the gap between traditional markets and blockchain, providing investors with both efficiency and security.

Tokenization may shorten settlement times, expand accessibility, and bring new products to market, but it also raises fresh questions about regulation and stability.

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With secure infrastructure and a wide selection of digital assets, Bitrue makes it easier for investors to explore blockchain-based opportunities without compromising safety.

Whether tokenized securities gain momentum or not, Bitrue ensures that everyday investors can keep pace with the next chapter of digital finance.

FAQ

What are tokenized stocks?

Tokenized stocks are digital versions of equities recorded on a blockchain, offering the same rights as traditional shares.

Why is Nasdaq filing with the SEC?

Nasdaq seeks regulatory approval to ensure tokenized securities are treated the same as traditional stocks, with investor protections intact.

How could tokenization benefit markets?

It can speed up settlements, increase transparency, and enable fractional ownership.

Are tokenized stocks risky?

Like all assets, they carry risks, including volatility and cybersecurity concerns, but regulation aims to minimize them.

When will tokenized stock trading begin?

Nasdaq plans to launch once the SEC approves and supporting infrastructure is ready through the Depository Trust Company.

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