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Key Takeaways
Integration of Blockchain in Traditional Markets – Nasdaq aims to list and trade tokenised versions of stocks and ETFs, leveraging blockchain technology to modernise the US equity market while ensuring these digital securities carry the same rights as their traditional counterparts.
Potential Benefits for Investors – Tokenisation could enable fractional ownership of high-priced stocks, increase market accessibility, improve transparency, and streamline trading processes through faster settlements and lower operational costs.
Regulatory and Infrastructure Challenges – SEC approval is crucial, and Nasdaq must coordinate with clearing and settlement entities like the DTC. Adoption depends on regulatory clarity and market participants’ readiness to embrace blockchain-based trading.
Nasdaq has submitted a proposal to the US Securities and Exchange Commission (SEC) requesting approval to list and trade tokenised versions of stocks and exchange-traded funds (ETFs) on its central exchange.
Overview
On September 8 2025, Nasdaq filed a request with the US SEC asking for a rule change that would allow the company to list tokenised stocks. This initiative aims to integrate blockchain technology into the existing US equity market infrastructure, allowing for trading digital representations of traditional securities alongside their conventional counterparts.
The company said in the filing,
“A security may be traded in the Nasdaq Market Centre in either traditional form or tokenised form.”
The proposal suggests that tokenised assets should be clearly labelled to ensure proper processing by clearing and settlement entities, such as the Depository Trust Company (DTC). Nasdaq emphasises that tokenised securities must offer the same rights and benefits as traditional securities to be treated equivalently and traded under the same rules. The tokenised versions would be treated as distinct instruments if these rights are not fully preserved.
Potential Benefits and Challenges
Benefits:
Increased Accessibility: Tokenisation could enable fractional ownership, allowing investors to purchase smaller portions of high-priced stocks, thereby broadening access to a broader range of investors.
Operational Efficiency: Blockchain technology has the potential to streamline trading processes, reducing settlement times and operational costs.
Enhanced Transparency: The immutable nature of blockchain records could improve transparency and trust in the trading process.
Challenges:
Regulatory Uncertainty: The SEC’s approval is crucial, and the regulatory landscape for tokenised securities is still evolving, which may introduce uncertainties.
Infrastructure Integration: Integrating blockchain technology with existing market infrastructure, such as the DTC, requires significant coordination and development.
Market Adoption: Widespread adoption of tokenised securities depends on the willingness of market participants to embrace new technologies and processes.
Timeline and Future Outlook
If the SEC approves Nasdaq’s proposal, the first tokenised trades could occur as early as the third quarter of 2026, contingent upon the readiness of the DTC’s infrastructure. Nasdaq’s initiative aligns with a broader trend in the financial industry, where firms like Coinbase, Citi, and Bank of America are exploring tokenisation to modernise and streamline trading through blockchain technology.
This move marks a significant step toward integrating blockchain into traditional finance, potentially reshaping the landscape of US equity markets and setting a precedent for other exchanges globally.