Nasdaq Submits SEC Proposal for Trading Tokenized Securities
On September 8, 2025, Nasdaq filed with the SEC to allow trading of tokenized equities and exchange-traded products (ETPs) on its platform. Key points include:
- The proposal aims to reduce market friction, speed up settlement times, and automate processes.
- Tokenized securities would represent digital forms of traditional shares, maintaining value and rights without diluting liquidity.
- Clearing and settlement for these tokens will be handled by the Depository Trust Corporation (DTC).
- The initiative seeks industry feedback during a public comment period.
- This move aligns with increasing trends in asset tokenization, evidenced by BlackRock's BUIDL fund launch and Robinhood’s offerings in Europe.
Tokenization has expanded significantly since 2022, with the real-world asset (RWA) market growing from $5 billion to over $24 billion by September 2025. Recent developments include:
- BlackRock's BUIDL Treasury fund on Ethereum surpassing $500 million in mid-2024.
- Ondo Finance launching 100+ tokenized US stocks on Ethereum.
- Trust Wallet integrating tokenized equities for its large user base.
Nasdaq's proposal represents a significant step towards integrating blockchain within traditional finance structures.