Nasdaq has filed with the SEC to integrate blockchain technology into regulated equity markets, potentially changing traditional stock trading.
Nasdaq's Application for Stock Tokenization
On September 8, 2025, Nasdaq submitted its application to the SEC to allow stock trading through tokenization on the blockchain. This proposal may redefine traditional stock trading and push for infrastructure upgrades in the financial sector.
Potential Market Impact and Institutional Response
The adoption of this proposal could reshape the market by increasing transparency and efficiency, potentially affecting institutional participants. The financial sector may face demands for infrastructure adaptation, impacting brokers, custodians, and clearinghouses.
Historical Perspective on Blockchain Integration in Trading
Attempts by exchanges to integrate blockchain, such as Euronext's digital asset ETFs, highlight the ongoing digital transformation in financial markets. Successful approval of Nasdaq's proposal could lead to broader institutional acceptance and adaptation of blockchain technology in stock trading.
Nasdaq's application for stock tokenization may significantly impact financial systems and trading processes, creating new opportunities for enhanced liquidity and efficiency.
