Nasdaq plans to put tokenized and conventional securities on the identical order e-book.
Settlement would nonetheless run by way of DTCC methods regardless of blockchain integration.
Trade responses are cut up as regulators assess authorized and operational dangers.
The US Securities and Trade Fee has begun a proper overview that might decide whether or not tokenized shares are allowed to commerce on Nasdaq, putting blockchain-based securities below shut regulatory examination.
By searching for public suggestions on Nasdaq’s proposed rule change, the SEC is assessing how digital representations of shares may match inside present market constructions.
The transfer displays rising curiosity in tokenization throughout monetary markets, whereas underscoring regulators’ give attention to authorized certainty, settlement integrity, and investor safety.
Any choice is more likely to affect how shortly blockchain know-how is adopted inside mainstream fairness buying and selling.
In accordance with the SEC submitting, Nasdaq has requested for approval to checklist and commerce securities in tokenized kind.
This step has triggered a broader session course of overlaying regulatory, technical, and coverage concerns.
The overview will decide whether or not tokenized shares can function alongside conventional equities with out altering core market safeguards.
Regulatory overview begins
Below Nasdaq’s proposal, tokenized shares and exchange-traded merchandise would commerce in parallel with typical shares.
Each codecs would seem on the identical order e-book and carry the identical shareholder rights.
Clearing and settlement would proceed by way of the Depository Belief and Clearing Company, whereas blockchain know-how could be used to enhance operational effectivity.
The SEC’s request for suggestions indicators that no approval is assured.
As a substitute, regulators are evaluating whether or not tokenized securities can ship quicker and cheaper settlement with out creating new dangers.
The session marks the beginning of a deeper evaluation slightly than a closing choice.
How tokenized shares would commerce
If authorised, Nasdaq’s framework would permit blockchain-based shares to commerce similar to common shares.
Traders wouldn’t want separate methods or accounts, as tokenized and conventional securities would coexist inside the identical buying and selling surroundings.
Settlement would nonetheless depend on DTCC methods, making certain continuity with present market processes.
Specialists argue that this construction preserves investor protections whereas permitting blockchain to cut back settlement occasions and operational prices.
The SEC’s overview will assess whether or not these effectivity good points outweigh potential complexities launched by tokenized record-keeping.
Trade views divided
Market reactions to the proposal have been blended. Trade teams have voiced assist, pointing to the potential for tokenization to reinforce market effectivity and modernise post-trade processes.
Regulatory developments elsewhere additionally counsel rising openness.
The US Commodity Futures Buying and selling Fee has authorised a pilot programme permitting tokenized property for use as collateral, indicating broader acceptance of blockchain-based monetary devices.
Nevertheless, opposition has emerged from corporations together with Ondo Finance and Cboe World Markets.
These corporations argue that the SEC ought to delay approval till the DTCC offers clearer steerage on how tokenized trades could be settled.
Their concern centres on the truth that all such transactions would nonetheless rely on DTCC infrastructure, making settlement readability crucial.
