Nasdaq files with SEC to tokenize stocks
Nasdaq asked the U.S. Securities and Exchange Commission (SEC) to approve stock tokenization. The new product would let investors trade digital tokens tied to real shares.
The project envisions issuing digital tokens, each backed by actual shares of public companies. These tokens would trade on a blockchain while maintaining their legal link to traditional securities.
Nasdaq proposed in the filing that tokenized assets are clearly labeled, so both traders and the Depository Trust Company can process them like any other order. It also confirmed that tokenized assets will have the same execution priority as traditional ones.
Tokenization offers investors 24/7 trading, instant settlement and lower fees compared to traditional markets. It also enables fractional ownership, making investments more accessible to retail players.
If approved by the SEC, Nasdaq would become the first major U.S. exchange to officially adopt stock tokenization. The move could set a precedent for other exchanges and financial institutions that are already piloting similar solutions.
There are precedents outside the U.S. In Europe, Deutsche Börse and Switzerland’s SIX Digital Exchange have already launched such initiatives, while the Singapore Exchange has run pilot trades.
However, chances for approval remain mixed. On one hand, the regulator has already allowed Bitcoin ETFs and is actively exploring the tokenized bond market. On the other hand, the SEC has traditionally been cautious with new asset classes, especially those involving retail investors.
If approved by the SEC, Nasdaq would become the first major U.S. exchange to officially adopt stock tokenization. The move could set a precedent for other exchanges and financial institutions that are already piloting similar solutions.
There are precedents outside the U.S. In Europe, Deutsche Börse and Switzerland’s SIX Digital Exchange have already launched such initiatives, while the Singapore Exchange has run pilot trades.
However, chances for approval remain mixed. On one hand, the regulator has already allowed Bitcoin ETFs and is actively exploring the tokenized bond market. On the other hand, the SEC has traditionally been cautious with new asset classes, especially those involving retail investors.
Commissioner Hester Peirce recently said the SEC is open to working with tokenization firms, but stressed the importance of clearly disclosing what the tokenized assets represent.
In his post, Nasdaq President Tal Cohen wrote that the company aims to bridge the gap between digital and traditional assets. He emphasized that the key challenge is making sure this shift stays focused on protecting investors.
Stock tokenization is part of the fast-growing Real World Assets (RWA) sector, which in 2025 has already seen billions of dollars’ worth of tokenized bonds issued. If Nasdaq secures approval, the U.S. could set the global standard for integrating traditional finance with blockchain.
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