Nasdaq announced it’s submitted a filing to the US Securities and Exchange Commission (SEC) to facilitate the trading of tokenized securities on its markets.
Specifically, Nasdaq has proposed the ability for member firms and investors to tokenize the equity securities and exchange traded products (ETPs) that they trade on the Nasdaq Stock Market, with the goal of advancing financial innovation while maintaining stability, fairness, and investor protections.
Nasdaq’s tokenization proposal seeks to draw upon the lessons and insights gained from decades of experience in both traditional finance and digital assets.
Chuck Mack, senior vice president of North American Markets for Nasdaq, said in a Nasdaq Q&A interview: “The filing provides a simple and clear approach to enable trading of tokenized securities under the existing regulatory frameworks, utilizing the Depository Trust Corporation (DTC) to clear and settle trades in token form.”