Nasdaq Seeks SEC Approval for Trading Tokenized Securities on the Stock Exchange

Nasdaq has filed a formal application with the Securities and Exchange Commission (SEC) to obtain approval for a major change in the operation of the stock exchange. The initiative aims to introduce and trade digitized versions of listed stocks and exchange-traded products (ETPs), marking a significant step toward modernizing the capital market.

Nasdaq Proposal: How the Tokenized System Works on the Stock Exchange

The proposed structure retains the fundamental characteristics of traditional instruments: tokenized securities will have the same economic rights and CUSIP identifiers as their conventional counterparts. They will circulate on the same order book, maintaining a unified experience for investors on the stock exchange.

The innovative element lies in the optional use of blockchain technology through the distributed ledger platform DTC. This system allows for a distributed registration of ownership and transfers, enhancing transparency and security of transactions on the stock exchange.

T+0 Instant Settlement: The Digital Revolution of the Stock Exchange

One of the main promises of the proposal is near-instant settlement, known by the acronym T+0. Currently, the system (T+1 or T+2) involves significant time delays between the trading moment and the completion of the transfer.

Nasdaq emphasizes measures dedicated to preventing liquidity fragmentation, ensuring that migration to tokenized securities will not disintegrate the market. Integrating these securities into a single order book and within the stock exchange contributes to liquidity concentration and the formation of fairer prices for investors.

Implementation Timeline and Market Expectations

If the SEC approves the change, the initiative could be launched in the third quarter of 2026. This outlook raises critical questions for the digital financial ecosystem: how will investing institutions react to this transformation? What will be the implications for market behavior and trading volumes?

Nasdaq’s proposal represents a concerted effort to integrate blockchain technology into the daily operations of the stock exchange, offering a viable path toward a more efficient and digital capital market. The SEC’s decision will be crucial for the future of global financial infrastructure.