Nasdaq has proposed a new rule to the SEC aiming to enable regulated tokenized stock trading by 2026 under existing market systems, involving the Depository Trust Company.
Potential regulatory changes could significantly reshape market access and infrastructure, contingent upon successful execution and participant readiness.
Nasdaq Seeks SEC Approval for Tokenized Stocks by 2026
Nasdaq has formally proposed a rule to the SEC aiming to enable the trading of tokenized stocks by 2026. The intention is to create a fully regulated tokenized equity market that adheres to existing national market system rules.
The initiative involves Nasdaq, the Depository Trust Company, and oversight by the SEC. This transformative proposition could reshape market infrastructure and accessibility. Approval from regulatory bodies and the readiness of participants are pivotal for the proposal’s success.
Potential Market Shift: Impact of Tokenization
This venture promises to alter market dynamics and improve financial accessibility. Industry players are closely watching regulatory responses and potential technological shifts resulting from the integration of blockchain settlement systems.
The proposal’s realization could boost liquidity within U.S. equities markets by embracing tokenization protocols and fostering innovative trading methods. Historical interest in blockchain’s efficiency suggests significant technological and financial shifts upon successful implementation.
Blockchain Adoption: Nasdaq’s Strategic Move
Nasdaq’s pursuit of blockchain integration echoes past initiatives focused on improving post-trade settlement processes. Similar efforts previously showcased potential enhancements in trading infrastructures and market efficiencies.
Analysts from Kanalcoin predict that successful tokenized securities could enhance market transparency and efficiency. Drawing from past trends, experts anticipate positive regulatory cooperation and improved settlement mechanisms as pivotal outcomes. According to Nasdaq, “The Exchange’s proposal will allow for tokenized securities to trade on its market in a transparent manner, without degrading the NBBO, without fragmenting liquidity, and without requiring alternative technical solutions outside established market infrastructure.”
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