Nasdaq(US:NDAQ) Xin Lang Cai Jing·2025-09-17 23:44Core Viewpoint - Nasdaq has submitted a groundbreaking proposal to the SEC to modify exchange rules to allow the trading of tokenized securities on its market, potentially enabling major stocks like Apple and Amazon to be traded in token form, marking a significant integration of blockchain technology into Wall Street's core markets [1][12]. Proposal Key Points - The proposal includes a modification of the definition of "securities" to encompass both traditional and tokenized forms, emphasizing that tokenized securities are still considered securities [2][3]. - Tokenized securities must be fully fungible with their traditional counterparts, sharing the same CUSIP code and granting holders the same rights and privileges, such as voting and dividend rights [3][4]. - Nasdaq plans to integrate tokenized and traditional securities on the same order book, treating them equally during the trading process, while the settlement process will offer the option of using tokenized forms [4][5]. Trading and Settlement Mechanism - The trading mechanism will allow tokenized securities to be traded alongside traditional securities, ensuring price consistency and shared market depth [4][6]. - The settlement process will involve the DTC executing transactions through a blockchain system, providing a transparent and efficient method for ownership transfer [5][7]. - Nasdaq's approach aims to prevent liquidity fragmentation and ensure that the core mechanisms of price discovery and execution remain intact [6][8]. Market Implications - The introduction of tokenized securities is expected to enhance the efficiency of financial market infrastructure, potentially reducing settlement times from T+1 to near real-time [12][14]. - The global market for tokenized assets is projected to grow significantly, from approximately $2.1 trillion in 2024 to about $41.9 trillion by 2032, with a compound annual growth rate of 45.8% [12][14]. - Nasdaq's initiative is seen as a strategic move to attract more capital to the U.S. markets and to position itself competitively in the evolving landscape of digital assets [12][16]. Future Outlook - The proposal is anticipated to pave the way for further innovations in financial markets, including the potential for stocks to be used as collateral in decentralized finance (DeFi) and the automation of dividends and voting through smart contracts [13][14]. - Nasdaq's tokenized securities trading is expected to launch by the end of Q3 2026, pending SEC approval and the readiness of the DTC's distributed ledger technology [14][15]. - This development is viewed as a significant milestone in the commercialization of blockchain technology, marking its entry into mainstream finance and potentially transforming the traditional securities market [16].