Michaela
Matt Savarese, Nasdaq’s head of digital asset strategy, has stated that securing U.S. Securities and Exchange Commission (SEC) approval for the stock exchange’s plan to offer tokenized versions of its listed stocks is a top priority, with Nasdaq prepared to address any regulatory questions.
Key Points
- Nasdaq prioritizes SEC approval for its proposal to offer tokenized versions of listed stocks.
- Tokenized shares would carry the same rights, protections, and trade priority as traditional stocks.
- The proposal aims to modernize equity markets by bridging blockchain technology with conventional trading systems.
In an interview with CNBC, Savarese said Nasdaq aims to advance its proposal as quickly as possible, emphasizing the exchange’s intent to work closely with the SEC. Submitted on September 8, the plan seeks SEC approval to let investors trade stock tokens, digital representations of shares in publicly listed companies, directly on the exchange.
Savarese clarified that Nasdaq does not intend to fundamentally change stock investing. He emphasized that the exchange aims to advance tokenization responsibly, encouraging other major exchanges to adopt the approach while adhering to SEC guidelines and maintaining an investor-focused framework.
In its submission, Nasdaq noted that tokenized shares would carry the same rights and protections as traditional stock. The exchange also proposed distinct labeling for these digital assets to ensure that clearing firms and the Depository Trust Company could process orders in the same manner as conventional equities.
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Nasdaq further stated that tokenized securities would receive equal priority to traditional shares during trade execution. The proposal extends beyond a technical upgrade, prompting broader considerations about how stocks are issued, defined, and settled in today’s financial markets.
If approved, Nasdaq’s push into tokenized shares could mark a significant step toward modernizing the infrastructure of U.S. equity markets. By bridging traditional finance with blockchain technology, the exchange may pave the way for more flexible, efficient, and accessible trading options for investors.
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While challenges remain, including regulatory clarity and operational integration, Nasdaq’s proposal signals a growing acceptance of digital assets within mainstream finance.
As the industry explores these innovations, the move could reshape expectations for how stocks are bought, sold, and settled in the years ahead, potentially setting a new standard for the future of trading.
MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
