Nasdaq Receives SEC Approval for Tokenized Stock Trading Pilot
- The US Securities and Exchange Commission approved Nasdaq’s proposal to trade tokenized stocks alongside traditional securities.
- Only “eligible participants” can trade tokenized versions of stocks from the Russell 1000 Index and select ETFs.
- Tokenized stocks will share the same order book, price, ticker, and rights as their traditional counterparts.
- Nasdaq partnered with crypto exchange Kraken to facilitate the movement of securities to blockchain-based tokenized forms.
- SEC Chair Paul Atkins announced upcoming public comments on crypto-related exemptions, including a fundraising exemption.
This approval marks a significant step in integrating tokenization into mainstream finance, allowing for more efficient trading mechanisms and potentially shorter settlement times.
The SEC’s endorsement of Nasdaq’s pilot enables trading of top stocks in both traditional and tokenized formats, enhancing market accessibility for eligible participants. (Source)
