US SEC Seeks Public Feedback on Nasdaq’s Plan to Launch Tokenized Stock Trading

Wall Street's old guard just asked for permission to play with the new toys. The U.S. Securities and Exchange Commission is officially soliciting public comment on a landmark proposal from Nasdaq to list and trade tokenized versions of traditional equities.

The Mechanics of a Market Shift

Forget paper certificates and dusty ledgers. This isn't about digitizing records—it's about re-architecting ownership. The proposal would allow investors to buy and sell digital tokens representing shares in companies, all settled on a blockchain. It promises to slash settlement times from days to minutes and open the door to 24/7 trading, fundamentally challenging the plumbing of modern finance.

Why the SEC is Listening

The regulator's call for feedback is a critical step, not a rubber stamp. They're probing for risks: Can blockchain infrastructure handle the volume? Are investor protections robust enough? Does this create new avenues for manipulation? The SEC's ultimate decision will hinge on whether Nasdaq's framework meets the same standards of fairness and stability that—theoretically—underpin the current system. It's a high-stakes test of whether decentralized tech can meet centralized regulation's demands.

The Ripple Effect for Crypto

Approval would be a seismic endorsement of tokenization from one of finance's most conservative institutions. It signals that the largest traditional players now see blockchain not as a threat, but as the inevitable next exchange layer. For crypto markets, it bridges the perceived chasm between "digital gold" speculation and real-world asset utility, potentially funneling trillions in institutional capital toward blockchain rails.

A cynical observer might note that Wall Street only innovates when it can control the new revenue stream. The race isn't to democratize finance—it's to own the digital pipe through which all assets will eventually flow.

The US Securities and Exchange Commission is seeking public Feedback to decide whether Nasdaq can list and trade tokenized stocks. The MOVE comes as regulators closely examine how blockchain-based assets could fit into existing market rules.

If approved, blockchain-based shares could trade like regular stocks, offering faster and cheaper settlements. 

SEC Seeks Feedback On Nasdaq Tokenized Securities Plan

According to the SEC filing on Nasdaq’s rule change, the SEC has asked for public Feedback to decide whether Nasdaq should be allowed to list and trade securities in tokenized form. 

This marks the start of a deeper review process covering legal, technical, and policy issues.

Under Nasdaq’s plan, tokenized stocks and exchange-traded products WOULD trade alongside traditional shares. Both would use the same order book, offer the same investor rights, and settle through the DTCC, while blockchain technology improves efficiency.

A key example of this shift is Galaxy Digital, which recently became the first Nasdaq-listed company to tokenize its stock on Solana, showing how traditional finance and blockchain are merging.

Industry Reactions Remain Mixed

Market participants have shown mixed responses to the proposal. Groups like the Securities Industry and Financial Markets Association support the plan, saying tokenization can improve how markets work.

At the same time, the US Commodity Futures Trading Commission has approved a test program that allows tokenized assets to be used as collateral, showing growing acceptance.

However, firms like ONDO Finance and Cboe Global Markets have opposed the idea. They want the SEC to wait until DTCC clearly explains how tokenized trades will be settled, since all such trades would still depend on DTCC systems.

DTCC Approval Strengthens Tokenization Push

In a related development, the SEC recently issued a no-action letter to the Depository Trust Company, part of DTCC, allowing it to tokenize certain custody assets. This decision is seen as a critical building block, as any tokenized trades on Nasdaq would still need to clear and settle through DTCC systems.

Meanwhile, the CFTC now allows tokenized bitcoin, ether, and USDC as derivatives collateral. 

Banks like JPMorgan and BMW are testing on-chain transactions, showing tokenization can make trading faster, cheaper, and available 24/7 despite some challenges.