Nasdaq President Seeks SEC Approval To Tokenize All Assets On Exchange
With firms like BlackRock driving vital progress within the tokenization area, American inventory change Nasdaq is poised to make the most of this improvement by working with US authorities to make it simpler for tokenized securities to be traded.
Nasdaq’s Vision For Transforming Traditional Financial Services
In a latest LinkedIn submit, Nasdaq President Tal Cohen emphasized the potential of integrating tokenization and blockchain know-how with conventional market infrastructure.
He identified that this fusion may present substantial benefits to issuers, traders, and the broader economic system by lowering friction in transactions, rushing up settlement occasions, automating processes, and enhancing capital and collateral administration efficiencies.
As a part of this effort, Nasdaq has submitted a submitting to the US Securities and Exchange Commission (SEC) to allow the buying and selling of tokenized securities on its platform.
In his remarks, Cohen acknowledged the potential of blockchain know-how to introduce new post-trade processes, modernize proxy voting, and create programmable strategies for managing company actions.
The rise of decentralized finance (DeFi) has provided useful insights into how core monetary companies—resembling lending, buying and selling, and clearing—can function in a different way to ship worth.
However, Cohen additionally highlighted the dangers related to fast developments. Cohen harassed the significance of embedding governance and investor safety from the outset to make sure that the advantages of innovation might be totally realized.
First Token-Settled Trades By Late 2026?
Nasdaq’s latest submitting is seen as a pivotal step in its journey to include digital asset know-how into the US equities markets responsibly. The proposal goals to combine new capabilities into the prevailing monetary system, additional enhancing the effectivity and trustworthiness of those markets.
If the SEC approves Nasdaq’s proposal, it will characterize the primary occasion of tokenized securities being traded on a serious US inventory change, marking a big milestone within the integration of blockchain-based settlement into the nationwide market system.
Notably, Coinbase, the most important US cryptocurrency exchange, has additionally sought the regulatory company’s approval for providing “tokenized equities” to its customers, whereas main banks like Bank of America and Citi have expressed curiosity in exploring tokenized belongings.
Once Nasdaq’s proposal is in place and the mandatory infrastructure from the central clearing company is operational, traders may probably purchase shares on Nasdaq that settle in token type, all with out altering the present processes for order routing, pricing, surveillance, or reporting.
Nasdaq anticipates that US traders might witness the primary token-settled trades by the top of the third quarter of 2026, contingent upon the readiness of the Depository Trust Company’s infrastructure.
Featured picture from DALL-E, chart from TradingView.com
