SEC approves Nasdaq proposal to trade certain stocks in tokenized form
The Facts
- The SEC approved Nasdaq's proposal to allow certain securities to trade in tokenized form.
- Nasdaq filed the proposal with the SEC in September.
- The approved framework keeps clearing and settlement tied to the Depository Trust Company rather than moving trading entirely onto a separate blockchain system.
- The proposal would allow investors to trade certain stocks either as traditional shares or as blockchain-based digital tokens.
- The securities covered include some high-volume stocks, and multiple sources say the initial scope includes Russell 1000 stocks and certain exchange-traded funds.
- Several sources say tokenized shares are intended to match their traditional counterparts in key features such as ticker symbols, CUSIP numbers, and shareholder rights.
Context
What does tokenized trading mean in this context?
In the sources, tokenized trading means a stock or ETF can be represented as a blockchain-based digital token while still corresponding to the underlying security Investing.com,Cointelegraph,Bitcoin Magazine. The tokenized version is described as sharing the same ticker, CUSIP number, and shareholder rights as the traditional share WSJ,Cointelegraph,Bitcoin Magazine.
Will tokenized trades use a separate market?
No. The sources say the tokenized and traditional versions would trade on Nasdaq's existing market infrastructure, including the same order book, while settlement would still run through the Depository Trust Company WSJ,Cointelegraph,CoinDesk.
Which securities are included first?
The sources say the initial scope includes some high-volume stocks, with multiple reports specifically mentioning Russell 1000 stocks and certain index ETFs Finimize,Decrypt,Bitcoin Magazine.
The receipts — all 39 sources
Wire services (6)
Independent coverage (33)
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