Core Viewpoint - The Federal Reserve's recent interest rate cut of 25 basis points has shifted global attention to the flow of dollar capital, prompting the SEC to introduce a new mechanism for stock tokenization on Nasdaq to retain market liquidity [2][3]. Group 1: Stock Tokenization Mechanism - Nasdaq has submitted a proposal to the SEC to modify trading rules, allowing both traditional and tokenized securities to be traded on its main market, which includes listed stocks and ETFs [2]. - Stock tokenization transforms traditional U.S. stocks into divisible tokens that can be traded on the blockchain, enhancing flexibility and accessibility for investors [3]. - The SEC's approval of Nasdaq's proposal would mark the first instance of a major U.S. exchange trading tokenized securities, potentially having a profound impact on global capital markets [2][4]. Group 2: Benefits of Tokenized Trading - Tokenized trading platforms offer significantly lower transaction fees compared to traditional brokers, with fees as low as 0.3% compared to 1% for traditional methods [5]. - Users can purchase as little as 0.001 shares, allowing for smaller investments and reducing the pressure on retail investors [5][6]. - The tokenization mechanism is expected to attract retail investors who have been excluded from high-priced stocks, thereby enhancing market liquidity [6]. Group 3: Target Audience for Tokenized Trading - The primary audience for tokenized trading includes crypto-native users familiar with blockchain technology, ordinary global investors facing high costs and complexities in traditional trading, and professional investors seeking efficiency and transparency [7][8]. - The focus will initially be on high-value stocks like Apple and Tesla, which are more recognizable and have better liquidity, making them attractive to new users [8]. Group 4: Market Implications - The introduction of tokenized trading could be a significant innovation in the U.S. financial market, allowing smaller investors to participate in high-value stocks and potentially increasing overall market participation [6][8]. - The recent interest rate cut by the Federal Reserve may drive investors to seek higher returns in the U.S. stock market, particularly in major stocks, as tokenized trading offers more flexibility and lower transaction costs [8].