Nasdaq Requests SEC Rule Changes for Tokenized Stock Trading

The Nasdaq stock exchange has formally petitioned the U.S. Securities and Exchange Commission (SEC) to implement amendments to current regulations, paving the way for the trading of tokenized stocks. This action signifies a substantial advancement toward the integration of blockchain technology within conventional capital markets. As outlined in the submitted request, Nasdaq endeavors to establish a novel platform facilitating the exchange of stocks represented as digital tokens on a blockchain for investors. The primary objective of this initiative is to enhance market efficiency, transparency, and liquidity. By leveraging blockchain technology, transactions can be securely and efficiently recorded and tracked, minimizing reliance on intermediaries and reducing associated costs. Tokenized stocks also possess the potential to extend access to a broader investor base, including individuals who may not have access to traditional markets. Nevertheless, regulatory hurdles remain, as the SEC must address various concerns related to investor protection, fraud prevention, and compliance with existing laws. The timeline for the SEC’s decision regarding Nasdaq’s request remains uncertain, but a potential approval could yield far-reaching implications for the future of capital markets.