Nasdaq Seeks SEC Approval for Tokenized Trading

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].