Nasdaq asked the U.S. Securities and Exchange Commission on Sept. 8, 2025 for permission to offer tokenized stocks, proposing that customers could choose to trade equities either through the existing market plumbing or on-chain. The exchange says tokenized orders would receive the same execution priority as traditional orders.
Under Nasdaq’s proposal, tokenized shares — including exchange-traded products such as ETFs — would be recorded on a digital ledger while continuing to clear and settle through the Depository Trust Company (DTC) once that post-trade infrastructure is ready. Nasdaq also states that token holders would retain full shareholder rights tied to the underlying security, including voting and liquidation rights.
This filing escalates a fast-moving industry trend. Crypto-native platforms and some brokerages have already piloted tokenized shares in other markets, and Robinhood launched stock tokens for European customers earlier this year. Nasdaq’s plan is notable because it seeks to integrate tokenization inside regulated national market venues rather than confining it to off-exchange trading rooms.
Regulatory momentum matters: SEC Chair Paul Atkins has made asset tokenization a priority under Project Crypto, convening panels to explore how to move securities on-chain. Nasdaq President Tal Cohen framed the move as adding new capabilities to established market infrastructure without changing execution priority.
Why this matters: tokenization can shorten settlement cycles, enable 24/7 trading windows, and expand fractional ownership, potentially boosting liquidity and innovation. But practical and legal challenges remain — custody models must adapt, operational resilience must be strengthened to reduce cyber risks, and regulators will need to clarify compliance and investor-protection rules.
Next steps: DTC is developing the necessary post-trade services. Nasdaq’s proposal will advance only if the SEC accepts the filing and any required infrastructure and regulatory conditions are met. Market participants should watch for DTC testing, SEC feedback, and how exchanges and broker-dealers operationalize custody and settlement for tokenized securities.
Source: Coindesk. Read the original coverage for full details.