Nasdaq files plan for tokenized securities trading in US

Nasdaq has filed a proposal with the US Securities and Exchange Commission (SEC) to allow trading of tokenized securities on its main market.

If approved, this would be the first time tokenized securities are traded on a major US stock exchange.

Tokenization refers to converting financial assets like stocks or bonds into cryptocurrency assets.

Nasdaq said its plan would let listed stocks and exchange-traded products be traded in either traditional or tokenized form, and that tokenized securities would only be treated as equivalent to regular shares if they provide the same rights and privileges.

The move follows the SEC’s recent rulemaking agenda, which includes possible changes to allow cryptocurrency trading on national exchanges.

Nasdaq’s proposal is under review and awaits regulatory approval.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Global regulatory momentum is creating competitive pressure for US exchanges

Nasdaq’s proposal comes as other jurisdictions have already moved forward with tokenization frameworks, creating competitive pressure for US markets.
The European Banking Authority published technical standards in August 2025 that allow EU banks to handle tokenized traditional assets without additional capital requirements, giving European institutions a significant regulatory advantage 2.
Switzerland pioneered tokenized securities as early as 2018 when Mt Pelerin issued the world’s first company shares on blockchain with full legal protections equivalent to traditional shares 3.
This regulatory patchwork means US exchanges risk losing market share to international competitors if American tokenization rules remain restrictive, particularly as trading of tokenized US stocks is already happening in Europe through platforms that don’t provide actual share ownership 1.

Institutional adoption signals potential for massive market expansion

Major financial institutions are positioning for significant growth in tokenized assets, with projections estimating the market could reach $2 trillion by 2030 4.
Global banks including Bank of America and Citi have indicated they could explore launching tokenized assets, suggesting institutional confidence in the technology’s commercial viability 1.
Nasdaq’s emphasis on maintaining “same material rights and privileges” for tokenized securities addresses a key concern that has limited institutional adoption—ensuring tokenized assets provide genuine ownership rather than synthetic exposure 1.
The proposal to trade tokenized and traditional securities on the same order book represents a significant infrastructure commitment that would integrate blockchain settlement into the core US market system, potentially reducing costs and settlement times across the entire market 1.