Nasdaq Files with SEC to Allow Tokenization, Blockchain Listing of Stocks

The Nasdaq composite has filed with the Securities and Exchange Commission (SEC) to allow the tokenization and blockchain listing of stocks. The announcement comes less than a week after the US regulator revamped its rules and regulations for handling crypto, including potential amendments for crypto stocks. If approved, the exchange would allow customers to trade tokenized stocks with the same priority as traditional equities.

In its filing on Monday, Nasdaq said it believes the markets can use tokenization while “continuing to provide the benefits and protections of the national market system.” The Nasdaq President, Tal Cohen, added, “Wholesale exemptions from the national market system and related protections are neither necessary to achieve the goal of accommodating tokenization, nor are they in investors’ best interests.”

Nasdaq Follows Coinbase, Kraken in Proposal of Stock Tokenization and Blockchain Listing

Crypto exchange Coinbase has already announced its plans to launch tokenized stocks and prediction markets for users in the US in the coming months. Currently, tokenized equities are not available for trading in the United States. However, several firms are experimenting with offering these products. Coinbase rival Kraken said earlier this year that it is launching tokens of U.S. equities, called xStocks, which will be available in select markets outside the United States. The Nasdaq being granted approval would be a huge step forward for tokenization and digitalization of stock assets, and likely pave the way for the likes of Coinbase and Kraken for their tokenized stocks.

Indeed, the tokenization of stocks and other traditional, non-crypto native assets has surged in popularity this year. The Trump administration has worked to roll back restrictive crypto policies from the previous U.S. leadership, with the SEC even doing the same under new leadership. It’s expected that the SEC will approve the measure from Nasdaq; however, nothing is guaranteed.

Also Read: XRP Goes Live for 60M Air China Travelers Worldwide

Furthermore, the Nasdaq’s announcement for the tokenization of stocks sent ripples through the crypto market. The market’s overall cap is up 2% on Monday, with leading coins like BTC and ETH trading higher. The Nasdaq composite is also up over 100 points.