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SEC Greenlights Blockchain Trading on Nasdaq
19 Mar
Summary
- Nasdaq's proposal allows trading of some stocks as tokens on blockchain.
- Tokenized and traditional shares will share ticker and Cusip numbers.
- Kraken will offer tokenized stocks to its European and global customers.
The Securities and Exchange Commission (SEC) has given the green light to Nasdaq's proposal, enabling the trading of select stocks and exchange-traded products in tokenized formats. This significant development means investors can now trade popular stocks, such as Nvidia or Tesla, either as conventional shares or as digital tokens built on blockchain technology, all within Nasdaq's existing infrastructure.
Nasdaq's tokenized securities will be designed for interchangeability, sharing the same ticker and Cusip numbers as their traditional counterparts. They will settle through the Depository Trust Company, ensuring seamless integration with current market processes. While market participant feedback was mixed, with some supporting the regulatory framework and others raising competition concerns, the SEC concluded that Nasdaq's plan meets investor protection and public interest standards.
Furthermore, Nasdaq has established a framework to ensure holders of tokenized shares receive the same governance rights as traditional shareholders. In collaboration with crypto exchange Kraken, these tokenized stock versions will be made available to Kraken's customers worldwide. This initiative aligns with a broader industry trend toward 24/7 trading and the digital transformation of assets.
