What happened?
Nasdaq has requested approval from the Securities and Exchange Commission (SEC) for a rule change that could pave the way for the listing and trading of tokenized versions of stocks. The proposal suggests amendments to existing rules, including the definition of a security, to extend traditional equities’ execution and documentation requirements to tokenized stocks.
Who does this affect?
This development directly affects companies, financial institutions, and investors dealing in equities. If approved, the tokenization of stocks could extend market access to overseas investors, support fractional ownership, and enable near-instant settlement and 24/7 trading on the Nasdaq exchange.
Why does this matter?
This move is significantly important for the financial markets as it could bridge the gap between digital-asset and traditional-asset worlds. It could establish blockchain as a core part of equity trading, potentially reshaping the landscape of American stock markets, driving liquidity, and creating new trading opportunities for investors.