NASDAQ Requests SEC Approval for Tokenized Stock Trading

NASDAQ has submitted a request to the U.S. Securities and Exchange Commission (SEC) to allow the trading of tokenized stocks on its platform. This initiative aims to provide customers with the option to trade either traditionally or through blockchain technology, treating both methods equally.

Tokenized assets would be traded in regulated environments, including national securities exchanges and broker-dealers.
The proposal follows Robinhood's efforts to issue stock tokens for European users, providing access to 200 U.S. stocks and ETFs.
Other exchanges like Bybit, Kraken, and Gemini are also entering the tokenized stock market.
NADSAQ plans to clear and settle these trades through the Depository Trust Company (DTC).
Buyers of tokenized stocks will maintain full rights associated with the shares, including voting and liquidation rights.
Implementation will begin once the necessary infrastructure and settlement services are established by DTC.
SEC Chairman Paul Atkins emphasizes the importance of asset tokenization, likening it to past transitions in media formats.

This move marks a significant step for NASDAQ, home to major tech companies, as it enters the competitive landscape of tokenized equities.