Nasdaq Pushes for SEC Green Light on Tokenized Stocks

Nasdaq’s head of digital asset strategy, Matt Savarese, announced accelerated efforts to secure SEC approval for trading tokenized stocks on Nasdaq, promoting integration within the existing regulatory framework.

This initiative could modernize equity trading and underscores the growing importance of tokenized assets, while maintaining regulatory compliance and investor protection, potentially impacting the crypto ecosystem significantly.

Nasdaq Aims to Revolutionize Equity Trading with Tokenization

Nasdaq’s proposal to enable tokenized stock trading was filed with the SEC, led by Matt Savarese. The exchange aims to trade tokenized equities without disrupting the current financial system, focusing on investor protection and regulatory compliance.

If approved, the initiative would bring benefits like fractional ownership, all-hours trading, and enhanced settlement efficiency. This could attract new investors and increase participation in equity markets. Nasdaq plans on-chain settlement to coincide with DTC infrastructure readiness.

Market reactions have been overall positive, with SEC Commissioner Hester Peirce expressing interest in the innovation tokenized securities represent. The market’s cautious optimism reflects a balance between embracing new technologies and ensuring regulatory adherence.

Matt Savarese, Head of Digital Asset Strategy at Nasdaq, emphasized:

“Nasdaq will accelerate the process as much as possible while refining the proposal based on public and regulatory feedback, emphasizing a responsible, investor-oriented approach aligned with SEC rules.”

SEC Decision Could Pave Way for Blockchain Integration

Did you know? Galaxy Digital was the first Nasdaq-listed company to tokenize its equity on a major blockchain, marking an industry milestone toward mainstream acceptance of tokenized assets.

According to CoinMarketCap, Ethereum (ETH) is currently priced at $2,998.53 with a market cap of $361.91 billion, holding an 11.72% market dominance. The 24-hour trading volume is $12.56 billion, with recent price trends showing a 7-day gain of 6.01%.

Coincu’s research team notes that the SEC’s decision could pave the way for broader deployment of blockchain technology in financial markets, yet emphasizes the need to address smart contract risks and cybersecurity challenges before large-scale tokenized trading becomes viable.