- Nasdaq requests the SEC’s approval to allow publicly listed companies within its platform to tokenize their equity securities and ETPs.
Nasdaq, like many others within the traditional finance (TradFi) realm, is recognizing the soaring institutional attention toward blockchain and other similar technologies. In a huge announcement on Monday, the institution revealed seeking approval from the US Securities and Exchange Commission (SEC) to allow it to facilitate the trading of tokenized securities on its markets.
Tokenization of Securities and ETPs in Nasdaq
The New York-based stock exchange particularly proposed the ability of its member firms and investors to tokenize the equity securities and exchange-traded products (ETPs) that they trade on its platform. Nasdaq justified its move as a necessary step to advance financial innovation, while maintaining stability, fairness, and investor protections.
Tal Cohen, President of Nasdaq, believes the new measure opens up an “extraordinary opportunity” for the global financial market. He stated on the company’s official LinkedIn channel that blockchain’s reduced friction, quick settlement times, automated processes, and enhanced efficiency offer profound advantages for capital and collateral management.
“Leveraging the strength of our markets can provide the most scalable way for blockchain technology to unlock the full benefit for all market participants,” said Cohen. “Today’s filing marks an early step in Nasdaq’s journey to bring digital assets technology into the US equities markets and to take a responsible approach to bridge the gap between the digital-asset and traditional-asset worlds.”
Meanwhile, Chuck Mack, Senior Vice President (SVP) of North American Markets at Nasdaq, explained that the goal for the rule change is to integrate digital assets into the marketplace’s existing infrastructure. In addition to the benefits Cohen mentioned, the SVP claimed the filing provides a streamlined, regulatory-compliant, and clear approach to trading tokenized securities, and lets the Depository Trust Corporation (DTC) clear and settle trades in token format.
Token vs. Security: A Key Distinction
Mack also discussed the fundamental differentiation between a token and a security. In the context of Nasdaq’s proposal to the SEC (under filing number SR-NASDAQ-2025-072), a token is a digital representation of asset ownership recorded on a blockchain. On the other hand, a security is the underlying tradable financial asset that corresponds to a stake or credit in a corporation.
Tokenized securities, therefore, form a hybrid model that records traditional financial tools within a blockchain or other distributed ledger technology (DLT). In essence, they are a new, efficient method of digitally representing an asset, forged through blockchain technology while remaining fully subject to existing securities regulations. This approach ensures that the benefits of blockchain can be leveraged without compromising the robust investor protections of the established financial system.
