Nasdaq files with SEC to allow tokenization and blockchain listing of stocks.

Nasdaq files with SEC to allow tokenization and blockchain listing of stocks.

NASDAQ, the prominent U.S. stock exchange, has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) seeking approval to offer tokenized securities alongside traditional stock trading. This move marks a significant shift in NASDAQ's business model and could pave the way for blockchain technology to become more integrated into the core of America's equity markets [1].

The proposal, filed on Monday, aims to allow customers the option to trade equities either through traditional methods or through tokenized securities on the blockchain. NASDAQ believes that this system can provide the benefits and protections of the national market system while leveraging the potential of blockchain technology [1].

The SEC has been increasingly focused on tokenization, with Chairman Paul Atkins expressing that the migration of securities from off-chain to on-chain systems has the potential to reshape the securities market. The proposal by NASDAQ aligns with this broader regulatory push to explore and facilitate the use of blockchain technology in the financial sector [2].

If approved, NASDAQ would allow tokenized assets to be traded on regulated markets such as national securities exchanges, alternative trading systems, and at Financial Industry Regulatory Authority (FINRA) regulated broker-dealers. The exchange would treat tokenized assets with the same priority as traditional assets, ensuring that they are executed and settled through the Depository Trust Company (DTC) [1].

The request from NASDAQ goes beyond a technical rule change, as it touches the fundamental aspects of how stocks are defined, issued, and settled. It could potentially integrate blockchain technology into the core infrastructure of Wall Street, addressing questions about whether blockchain is set to overhaul market infrastructure or remain a niche tool for crypto-native firms [2].

This move comes amid a broader trend of traditional finance firms entering the digital assets industry and blockchain technology. NASDAQ's proposal is part of a broader regulatory regime in Washington that is more open to crypto innovation in the U.S. markets [2].

Tokenization has been promoted as a way to deepen liquidity, support fractional ownership, and widen access for overseas investors in U.S. stock markets. However, it has faced challenges, such as the concern that tokenized shares may not always represent direct ownership of the underlying asset. NASDAQ's proposal aims to address these issues by ensuring that tokenized assets are clearly labeled and that they carry the same shareholder rights as the underlying security [2].

The approval of NASDAQ's proposal would be a significant milestone, as it could bring tokenized shares into the regulated system, putting blockchain technology in direct contact with some of the world's most heavily traded equities. This experiment could help settle the ongoing debate about the role of blockchain in overhauling market infrastructure [2].

References:
[1] https://www.coindesk.com/policy/2025/09/05/nasdaq-seeks-nod-from-u-s-sec-to-tokenize-stocks
[2] https://www.bloomberg.com/news/articles/2025-09-08/nasdaq-seeks-rule-change-with-sec-to-trade-tokenized-stocks