Nasdaq seeks SEC approval for tokenized stocks – Details inside!

Key Takeaways

Nasdaq sought the SEC’s approval to trade tokenized stocks that offer on-chain holders the same rights and protections as traditional stockholders. This would be different from current offerings by xStocks, Robinhood, or Ondo. 

Nasdaq, the leading U.S. public securities exchange, has formally requested approval from the SEC to begin trading tokenized stocks. This emerging segment is gaining momentum, with analysts predicting it could surpass stablecoins as the dominant narrative in digital finance.

Under U.S. President Donald Trump’s pro-crypto administration, regulatory conditions have become more favorable, encouraging major players from traditional finance (TradFi) to explore on-chain stock offerings.

As tokenization reshapes market infrastructure, the convergence of blockchain and equities is drawing serious institutional interest.

Expert views on tokenized stocks trend

Coinbase, Robinhood, Remora Markets, xStocks by Backed Finance, and Ondo are already making moves in the sub-sector. 

All their offerings are derivatives that track native stocks and ETFs but remain wrappers (mimics) with no rights or dividends. 

However, for Nasdaq’s President, Tal Cohen, the ‘native tokenized stocks’ will offer on-chain holders similar rights as traditional stockholders. 

“The approach will ensure tokenized securities trade as regular securities, safeguarding both investors’ rights and the systemic stability of our markets through tested, resilient infrastructure.”

Nasdaq’s VP, Chuck Mack, reinforced the investor protection, adding that traditional and on-chain stocks will trade side by side. 

“All shares will be traded on Nasdaq with the same order entry and execution rules, has the same identification number (CUSIP) as, and gives its holder the same rights and benefits as a traditional share.”

For SuperState’s founder, Robert Leshner, the trend could advance into very interesting and novel ideas like airdropping dividends to on-chain holders or voting on a proposal. 

The Nasdaq’s move comes at a time when the Senate seeks to advance the crypto market structure policy draft that would help clarify tokenized stocks classification.

Under the draft, tokenized stocks and other securities will be treated as securities. This aligns with Nasdaq’s proposal and SEC Commissioner Hester Pierce’s stance on tokenized securities. 

This is part of Trump’s broader agenda to make the U.S. the ‘crypto capital of the world.’

On his part, Chainlink’s [LINK] Head of Public Policy, Adam Minehardt, said the on-chain stocks trend will dwarf the stablecoin market. 

“In the next few years, this sum will pale in comparison to the trillions in tokenized assets that will come onchain.”