The U.S. Securities and Exchange Commission (SEC) has granted approval to Nasdaq to enable the trading and settlement of certain stocks in tokenized form. This move represents a significant step towards integrating blockchain-based settlements into traditional equity markets.
The SEC’s approval comes as exchange operators seek to capitalize on the growing trend of tokenization, particularly with the relaxation of cryptocurrency regulations under the current administration.
Nasdaq’s proposal, submitted in September and now approved, allows for the trading of listed stocks and exchange-traded products on its main market in either traditional shares or tokenized digital tokens. Initially, tokenized trading will be limited to securities in the Russell 1000 Index and ETFs tracking major benchmarks like the S&P 500 and the Nasdaq 100.
Rival Intercontinental Exchange has also made progress in this space, announcing the development of a platform for trading and on-chain settlement of tokenized securities, with regulatory approvals being pursued by the NYSE parent company.
Source: Tech-Economic Times