With U.S. regulatory policy increasingly favouring the emerging crypto sector, Nasdaq is seeking approval to list and trade tokenized securities.
The New York-based exchange said it submitted a filing to the U.S. Securities and Exchange Commission (SEC) to enable firms and investors to “tokenize the equity securities and exchange-traded products (ETPs) that they trade on the Nasdaq Stock Market.”
The proposal aims to facilitate trading of tokenized securities under the existing regulatory framework, using the Depository Trust Corp. (DTC) to clear and settle trades in token form, utilizing blockchain technology.
The same order entry and execution rules would apply to tokenized and traditional securities. Additionally, both types of shares would “have the same value, the same rights and benefits, and the same market identification number,” it noted.
“The approach will ensure tokenized securities trade as regular securities, safeguarding both investors’ rights and the systemic stability of our markets through tested, resilient infrastructure,” said Tal Cohen, president of Nasdaq, in a post accompanying the announcement.
“Our goal is to integrate digital assets into Nasdaq’s current infrastructure and systems, which will advance financial innovation while maintaining stability, fairness and investor protection,” added Chuck Mack, senior vice-president of North American markets at Nasdaq, in a release.