{"id":48347,"date":"2025-09-08T20:55:20","date_gmt":"2025-09-08T13:55:20","guid":{"rendered":"https:\/\/hbbgroup.net\/nasdaq-asks-sec-for-rule-change-to-trade-tokenized-stocks\/"},"modified":"2025-09-08T20:55:20","modified_gmt":"2025-09-08T13:55:20","slug":"nasdaq-asks-sec-for-rule-change-to-trade-tokenized-stocks","status":"publish","type":"post","link":"https:\/\/hbbgroup.net\/vi\/nasdaq-asks-sec-for-rule-change-to-trade-tokenized-stocks\/","title":{"rendered":"Nasdaq asks SEC for rule change to trade tokenized stocks"},"content":{"rendered":"
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Nasdaq, the world\u2019s second-largest stock exchange by market capitalization, is seeking regulatory approval from the US securities regulator to list tokenized stocks.<\/p>\n

Nasdaq filed<\/a> a request Monday with the US Securities and Exchange Commission (SEC) asking for a rule change that would allow the company to list tokenized stocks.<\/p>\n

The exchange operator specifically asked to amend certain rules, including the definition of a security, to trade tokenized stocks under the same execution and documentation rules as traditional securities, provided the tokenized versions are deemed equivalent.<\/p>\n

According<\/a> to a report by Bloomberg, Nasdaq\u2019s request with the SEC would go beyond a technical rule change as it relates to the foundations of how stocks are issued and settled.<\/p>\n

Tokenized assets should be clearly labeled<\/h2>\n

One of the changes sought by Nasdaq is that tokenized assets should be clearly labeled to ensure that all participants, including those responsible for clearing and settlement, like the Depository Trust Company, properly process these trades.<\/p>\n

\u201cA security may be traded in the Nasdaq Market Center in either traditional form (a digital representation of ownership and rights, but without utilizing distributed ledger (\u2018blockchain\u2019 technology)) or tokenized form (a digital representation of ownership and rights which utilizes blockchain technology,\u201d the company stated in the filing.<\/p>\n

\"Nasdaq,
An excerpt from Nasdaq\u2019s proposal to amend the exchange\u2019s rules to enable the trading of securities in tokenized form. Source: Nasdaq<\/em><\/figcaption><\/figure>\n

Additionally, Nasdaq also said that tokenized assets would have the same priority in which the exchange executes that order as it does with traditional stocks.<\/p>\n

If approved, US-regulated exchanges, including Nasdaq, would be authorized to list tokenized shares on their platforms, which could boost liquidity for blockchain-based versions of traditional securities.<\/p>\n

Nasdaq steps up against \u201csiloed trading venues\u201d<\/h2>\n

In the filing, Nasdaq emphasized the importance of putting tokenized securities under the purview of established securities markets players, opposing it to listings on \u201csiloed trading venues,\u201d where investors would have \u201cno consolidated sense of best market-wide prices.\u201d<\/p>\n

\u201cAlthough tokenization technology presents novel capabilities by which to record evidence of securities ownership and transactions, the trading of tokenized securities can, and it must occur largely as Congress prescribed when it enacted and subsequently amended the Act,\u201d the company said, adding:<\/p>\n

\u201cSuch trading must occur in regulated markets, namely national securities exchanges, alternative trading systems, and at FINRA [Financial Industry Regulatory Authority] regulated broker-dealers.\u201d<\/p><\/blockquote>\n

Nasdaq also advocated for tokenized securities to be traded \u201cwithin the context of an interconnected national market system.\u201d<\/p>\n

Concerns about Europe<\/h2>\n

In addition to pushing regulators to bring tokenization under the purview of established market players, Nasdaq expressed concerns about the growing number of offerings providing exposure to US tokenized stocks in Europe. <\/p>\n

\u201cA few trading platforms are purporting to offer investors access to tokenized US \u2018equities,\u2019 but they are not providing investors with actual shares in US companies,\u201d Nasdaq wrote, adding:<\/p>\n

\u201cInstead they are providing investors with digitally tradable rights to traditional digital shares that the platforms themselves purchase and hold in their own accounts. These digital rights do not comprise the full extent of the rights to which owners of traditional digital shares are entitled, including voting rights [\u2026]\u201d<\/p><\/blockquote>\n

Nasdaq\u2019s proposal came amid a growing trend for real-world assets (RWAs)<\/a> globally, with many platforms choosing to list tokenized versions of US investment products like Tesla shares or exchange-traded funds (ETFs)<\/a> for users in jurisdictions like Europe.<\/p>\n

Related: <\/strong><\/em>Boerse Stuttgart unveils pan-European platform for tokenized assets<\/strong><\/em><\/a><\/p>\n

\u201cThe reality is that users in the US already have relatively seamless access to traditional equities like stocks and ETFs through well-established brokerage platforms,\u201d Alchemy Pay\u2019s Ailona Tsik told Cointelegraph in June while commenting on the platform\u2019s partnership with Backed\u2019s equity tokenization platform xStocks.<\/p>\n

\u201cOur mission with this product is to bridge the gap for users outside of the US, especially in regions where direct access to such assets has traditionally been limited or unavailable,\u201d the exec said.<\/p>\n

Magazine: <\/strong><\/em>Korean bill to legalize ICOs, Chinese firm\u2019s Ethereum RWAs mystery: Asia Express<\/strong><\/em><\/a><\/p>\n