Investment Rating - The industry investment rating is "Recommended," indicating an expected increase in the industry index by more than 5% over the next 3-6 months compared to the benchmark index [18]. Core Insights - Nasdaq has submitted a proposal to the SEC for tokenized trading, aiming to introduce a compliant channel for tokenized securities settlement without disrupting the existing National Market System (NMS) [2][3]. - The proposal emphasizes that tokenization is not about issuing new coins but rather a settlement alternative for traditional securities, marking a significant step in the U.S. capital market's approach to tokenized settlements [3][4]. - If approved, the DTC is expected to launch on-chain settlement functionality in Q3 2026, potentially ushering in an era of "equal rights and quality" for tokenized securities [4]. Summary by Sections Proposal Details - The core of the proposal focuses on on-chain settlement during the clearing phase, requiring technical upgrades at the DTC [4]. - Tokenized securities will share the same order book and have equal matching priority as traditional securities [4]. - Members can indicate their preference for tokenized settlement during order placement, which will be processed by the DTC [4]. Market Implications - The push for a compliant path for tokenization in the U.S. capital market is expected to accelerate similar regulatory and exchange developments globally, with Hong Kong potentially being an early offshore market to respond [4]. - Stakeholders should monitor the Hong Kong SFC, HKEX, and local brokers for developments in the tokenized settlement space [4].

NASDAQ Developments - NASDAQ has requested the SEC to allow trading of clearly labeled equivalent rights tokenized shares as traditional stocks, marking a significant move to integrate blockchain technology into US equity markets [2][3] - Tokenized securities are digital representations of stocks that can enhance liquidity, support fractional ownership, and provide access to overseas investors [3] - The proposal seeks to amend existing rules to permit tokenized stocks to be traded similarly to traditional equities, addressing fundamental questions about stock issuance, definition, and settlement [4][5] Gemini Partnership - NASDAQ has become a strategic investor in Gemini Space Station, a cryptocurrency exchange founded by the Winklevoss twins, as it prepares for an IPO [6][7] - Gemini holds approximately $20 billion in assets and has processed nearly $300 billion in lifetime trading volume, offering various digital asset services [8] - The firm aims to raise around $300 million in its IPO, with NASDAQ investing $50 million in a private placement, enhancing access to Gemini's services for NASDAQ clients [9] CBOE Innovations - CBOE plans to launch continuous Bitcoin and Ether futures contracts later this year, pending regulatory review [10] - These contracts will have 10-year expirations, cash-settled, and aligned to real-time spot market prices, simplifying position management and reducing costs associated with periodic rolling [11] - The new products are expected to attract both retail and institutional traders, offering substantial advantages for long-term crypto exposure [12][13]

Summary of Key Points Core Viewpoint - The total short interest in Nasdaq securities has increased slightly, indicating a potential shift in market sentiment towards bearish positions as of the end of August 2025. Group 1: Nasdaq Global Market - Short interest in 3,315 Nasdaq Global Market securities totaled 13,901,511,651 shares at the end of the settlement date of August 29, 2025, down from 13,965,671,937 shares in the previous period [1] - The mid-August short interest represents an average of 2.39 days compared to 2.34 days for the prior reporting period [1] Group 2: Nasdaq Capital Market - Short interest in 1,673 securities on The Nasdaq Capital Market totaled 3,057,145,541 shares at the end of the settlement date of August 29, 2025, an increase from 2,964,394,253 shares in the previous period [2] - This represents an average daily volume of 1.10 days, up from 1.00 days in the previous reporting period [2] Group 3: Overall Nasdaq Securities - Total short interest in all 4,988 Nasdaq securities reached 16,958,657,192 shares at the August 29, 2025 settlement date, compared to 16,930,066,190 shares in the previous period [3] - This reflects an average of 1.97 days of daily volume, compared to 1.86 days for the prior reporting period [3] Group 4: Short Sale Definition - Open short interest positions reported for each Nasdaq security reflect the total number of shares sold short by all broker/dealers, regardless of their exchange affiliations [4]

Market Trends & Investment - Bitcoin climbed following an encouraging inflation reading, and the S&P 500 jumped to a new record after a reading on wholesale prices unexpectedly dropped [1][2] - Institutional interest has been shifting towards Salana, with Soul Strategies uplisting its shares to the NASDAQ [3] - Forward Industries announced a more than $15 billion private investment led by Galaxy Digital, Jump Crypto, and Multicoin Capital [3] - NASDAQ plans to invest $50 million in Gemini, allowing the stock exchange to offer Gemini's custodial services to financial institutions [4] - Gemini aims to sell more than 165 million shares priced between $24 and $26 each in its IPO [5] - Binance is teaming up with Franklin Templeton to develop digital asset products [6] Regulatory Landscape - The SEC crypto task force has been holding meetings with industry participants since early this year, showing a shift towards an open-door policy [10] - The Clarity Act passed by the House was a great first start and a strong signal that Congress can move quickly in this space [8][12] - The Senate is using the Clarity Act as a baseline for its version of a market structure bill, with hopes of having a bill on the president's desk by Christmas [14] - A group of Senate Democrats came out with a set of market structure principles, signaling bipartisan willingness to participate in the process [16] - The Genius Act passage showed that regulation can stimulate innovation, leading to a flood of partnership and new project announcements in the stable coin space [18][20] Future Considerations - Tax policy is the next big area that requires discussion, including topics like minimum dimminimous thresholds for transacting and the treatment of staking rewards [23][24] - The industry is excited to see where the discourse goes as it relates to DeFi, especially if DeFi is not comprehensively covered in market structure [25][26]

hyperliquid flips nasdaqpump flips twitchsphere flips stripecrypto apps supercycleKevin Mills (@__kfm__):Quite the data point that I haven't really seen mentioned anywhere:Nasdaq net income in 2024: $1.1B$HYPE net income at current rate: $1.3BIf they keep this up, they've flipped $NDAQ profitability.Not bad for a 2 year old exchange with a team of 11. https://t.co/halJwit6vS ...

📈 Institutional spotlight: #Nasdaq purchases $50M in #Gemini shares during its #IPO 💰 — a bullish signal for #cryptocurrency investors. How are you positioning? 🔥 https://t.co/86bLuZRSaS ...

Core Insights - Nasdaq is accelerating deep reforms in its core market, focusing on tokenization and 24/7 trading to reshape modern capital market structures and efficiency [1][2] - The introduction of tokenized stocks will integrate blockchain technology directly into the core securities trading system, moving beyond off-exchange or ancillary markets [1][2] - Nasdaq plans to extend trading hours to a 24/5 model, allowing global investors to trade freely outside traditional US trading hours [2] Tokenization and Trading Hours - The primary focus is on stock tokenization, which aims to trade tokenized securities alongside traditional stocks in the same system, enhancing market efficiency [2][3] - Nasdaq's transition to a 24/5 trading model is seen as a necessary trend to serve global investors, with the potential for 24/7 trading in the future [2][3] Market Structure and Efficiency - Tokenization and extended trading hours are expected to significantly improve the efficiency of clearing and settlement processes, reducing friction and lowering costs [3] - Nasdaq currently processes 3 million messages per second and nearly 100 billion messages daily, indicating room for improvement in clearing and settlement [3] Regulatory Approach - Nasdaq adopts a cautious "regulatory first" stance towards digital assets, emphasizing investor protection and the need for clear regulatory frameworks before entering the crypto space [4] - The convergence of traditional and digital market regulations is seen as an opportunity for Nasdaq to collaborate with institutional clients in offering compliant crypto asset services [4] IPO and Listing Process Reforms - Nasdaq is advocating for reforms in the IPO process to alleviate the burdens that keep many companies private, emphasizing the importance of public markets for economic growth [5][7] - Proposed reforms include simplifying disclosure requirements, promoting direct listings with capital raises, and improving the SPAC model to provide diverse options for companies [5][7] - The exploration of tokenized direct listings is highlighted as a forward-looking reform, aiming to make the listing process more efficient and transparent [7]

Core Viewpoint - Nasdaq is seeking permission from the SEC to tokenize US securities, allowing investors to choose between traditional trading methods and those utilizing a distributed ledger [2][4]. Group 1: Tokenization Proposal - Nasdaq's proposal includes the ability for investors to execute trades either traditionally or via a blockchain, with the Depository Trust Corporation managing the backend processes for clearing and settlement [2]. - Tokenized assets will maintain the same shareholder rights as traditional shares and will trade under the same order entry and market identification numbers [3]. Group 2: Market Context and Challenges - Tokenized trading for US equities is currently in a nascent stage, with some platforms already offering this for non-US investors [4]. - The potential launch of tokenized trading on Nasdaq could occur as early as Q3 2026, pending SEC approval, but faces challenges such as infrastructure readiness, standard development, and legal recognition across regulatory bodies [4]. - Investor advocates express skepticism about the actual benefits of tokenization, suggesting it may be more hype than substance [4]. Group 3: Industry Developments - Robinhood has introduced tokenized access to 200 US ETFs and stocks for European clients as of July [6]. - Kraken initiated a phased rollout of tokenized trading for US stocks and ETFs in late June, starting with 60 securities for eligible non-US clients [6].

Nasdaq joining the tokenized securities race could pave the way for real asset trading in #crypto form.This is HUGE for industry legitimacy 🏦 ...

Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, is preparing to go public with Nasdaq as both its listing venue and an investor, Reuters reported Tuesday, citing sources familiar with the matter. According to the news outlet, Nasdaq has agreed to buy $50 million worth of Gemini shares in a private placement tied to the initial public offering. The arrangement apparently goes beyond funding. Nasdaq’s clients will gain access to Gemini’s custody and staking services, while Gem ...