Nasdaq, the world’s second-largest stock exchange by market capitalization, is seeking regulatory approval from the US securities regulator to list tokenized stocks.
Nasdaq, the world’s second-largest stock exchange by market capitalization, is seeking regulatory approval from the US securities regulator to list tokenized stocks.
Nasdaq filed a request Monday with the US Securities and Exchange Commission (SEC) asking for a rule change that would allow the company to list tokenized stocks.
The exchange operator specifically asked to amend certain rules, including the definition of a security, to trade tokenized stocks under the same execution and documentation rules as traditional securities, provided the tokenized versions are deemed equivalent.
According to a report by Bloomberg, Nasdaq’s request with the SEC would go beyond a technical rule change as it relates to the foundations of how stocks are issued and settled.
Tokenized assets should be clearly labeled
One of the changes sought by Nasdaq with the SEC is that tokenized assets should be clearly labeled to ensure that all participants, including those responsible for clearing and settlement, like the Depository Trust Company, properly process these trades.
Additionally, Nasdaq also said that tokenized assets would have the same priority in which the exchange executes that order as it does with traditional stocks.
If approved, US-regulated exchanges, including Nasdaq, would be authorized to list tokenized shares on their platforms, bringing liquidity to blockchain-based versions of traditional stocks.
This is a developing story, and further information will be added as it becomes available.
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