Nasdaq, the second largest stock exchange in the world, has filed a request with the U.S. Securities and Exchange Commission (SEC) to amend the rules for listing tokenized stocks.
Nasdaq's Request to the SEC
Nasdaq has submitted a request to the SEC seeking rule changes that would allow the company to list tokenized stocks. Specifically, the exchange is proposing to amend the definition of a security so that tokenized stocks can be traded under the same rules as traditional securities.
Requirements for Tokenized Assets
One of the key changes requested by Nasdaq is that tokenized assets should be clearly labeled to ensure that all participants, including those responsible for clearing and settlement, properly process these trades. Nasdaq also stated that tokenized assets should have the same priority in order execution as traditional stocks.
Potential Implications
If approved, this would authorize U.S. regulated exchanges, including Nasdaq, to list tokenized shares on their platforms, potentially increasing liquidity for blockchain-based versions of traditional securities. This initiative could significantly impact the stock market and the tokenization of securities.
Nasdaq's request for a rule change underscores the growing interest in tokenized assets and their role in the modern financial market. This news highlights the advancing technology and potential changes in stock trading regulations.
