SEC Approves Nasdaq’s Tokenized Securities Framework, Transforming Stock Trading
- The SEC has approved Nasdaq’s framework for tokenizing certain stocks and ETFs, allowing them to trade alongside traditional shares.
- Investors can hold tokenized securities in digital wallets with settlement managed by the Depository Trust & Clearing Corporation (DTCC).
- This model aims to enable near-instant settlement and potentially around-the-clock trading, benefiting global investors.
- Despite the innovation, tokenized shares will still operate within the existing financial system and rely on brokers for trading.
- U.S. markets are seen as lagging behind jurisdictions like Kazakhstan and El Salvador in adopting flexible tokenization frameworks.
The SEC’s approval represents a significant step toward integrating blockchain technology into U.S. equity markets, focusing on post-trade processes rather than a complete overhaul of market operations.
With a market value of approximately $126 trillion, this move indicates that tokenization is poised to reshape public markets while maintaining existing structures and intermediaries.(Source)
