What to Know:
- Nasdaq seeks SEC approval to trade tokenized stocks.
- Shares would keep full rights while settling on blockchain.
- Tokenized trading could begin by late Q3 2026.
Nasdaq is taking a historic step by requesting approval from the U.S. SEC to let stocks trade as tokenized securities. If approved, this would mark the first time a major U.S. stock exchange allows shares and ETFs to be traded on the blockchain.
A New Way to Trade Stocks
Under Nasdaq’s proposal, investors could choose to trade traditional stock listings or their tokenized versions. Tokenized securities would appear and behave like regular shares, same rights, same voting power but would also be settled and recorded on a blockchain.
The exchange emphasized that tokenized stocks must have the same material rights as regular listed shares. This means token versions would carry full voting and ownership rights. If they lack those rights, they’d be treated differently. Trades would settle in the usual Depository Trust Company system, while a blockchain would log the transaction details. If everything goes according to plan and the DTC rolls out the needed infrastructure, Nasdaq could start tokenized trades by late Q3 2026.
Why This Matters
Firms like Coinbase, Robinhood, Citi, and Bank of America have shown interest in tokenizing securities, signaling broader market momentum.
Nasdaq’s filing meets rising demand while preserving investor protections. Rather than operating under separate rules, tokenized shares would trade the same way regular stocks do on the same order book, with the same rules and safeguards.It also aligns seamlessly with the Trump-era shift in crypto regulation, which is opening doors for blockchain innovations within traditional financial markets.
What Could Change
Tokenized stocks could make it easier for more people to trade, with the possibility of trading around the clock and faster settlement. Not only would this flexibility be good for U.S. investors, but it would also be good for global and retail traders who want to trade outside of normal market hours. Nasdaq could also make stocks more liquid by turning them into tokens. This would make them easier to trade and available to a wider range of investors.
Blockchain technology also makes things more open by keeping a record of every transaction on-chain, which makes it easy to see and follow. Nasdaq has made sure that protections for investors stay in place, which is very important. Tokenized shares would still follow the same rules as regular stocks.
What to Watch Next
Nasdaq’s proposal now heads to the SEC, where it will be carefully reviewed. The key question: will tokenized securities be permitted within established U.S. market rules, or will they require new regulations?
That depends in part on the success of the DTC’s infrastructure updates. Nasdaq expects that, once operational, tokenized trades could launch by Q3 2026 but only if the SEC gives the go-ahead. Meanwhile, other players like Coinbase and Robinhood are already testing similar waters. Traditional companies and crypto firms are all watching closely.
Final Thoughts
The SEC filing by Nasdaq is a big change in the financial markets because it shows that the biggest U.S. stock exchange is taking real steps to use blockchain in everyday trading. If they get the go-ahead, tokenized stocks could become a new way to trade that combines the openness and freedom of crypto with the structure and safety of regular markets.
This could start a new era in which stock trading and blockchain come together to create markets that are faster, more open, and easier to access, all while keeping investors’ trust.
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