Nasdaq has filed for a rule change with the SEC that would allow regulated exchanges in the US to trade tokenized stocks.
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Nasdaq, the world’s second-largest stock exchange by market capitalization, is seeking regulatory approval from the US securities regulator to list tokenized stocks.
Nasdaq a request Monday with the US Securities and Exchange Commission (SEC) asking for a rule change that would allow the company to list tokenized stocks.
The exchange operator specifically asked to amend certain rules, including the definition of a security, to trade tokenized stocks under the same execution and documentation rules as traditional securities, provided the tokenized versions are deemed equivalent.
to a report by Bloomberg, Nasdaq’s request with the SEC would go beyond a technical rule change as it relates to the foundations of how stocks are issued and settled.
One of the changes sought by Nasdaq with the SEC is that tokenized assets should be clearly labeled to ensure that all participants, including those responsible for clearing and settlement, like the Depository Trust Company, properly process these trades.
Additionally, Nasdaq also said that tokenized assets would have the same priority in which the exchange executes that order as it does with traditional stocks.
If approved, US-regulated exchanges, including Nasdaq, would be authorized to list tokenized shares on their platforms, which could boost liquidity for blockchain-based versions of traditional securities.
This is a developing story, and further information will be added as it becomes available.
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