#NasdaqTokenizedTradingProposal Nasdaq has filed a proposal with the US Securities and Exchange Commission (SEC) to allow tokenized securities trading on its platform. This move aims to bring blockchain technology into the core of American equity markets, potentially revolutionizing how stocks are issued, traded, and settled ¹.

*Key Points:*

- *Tokenized Securities*: Digital representations of ownership in physical assets, such as stocks, bonds, and more, stored safely on a blockchain.

- *Proposal Details*: Nasdaq seeks to trade tokenized stocks and ETFs alongside traditional shares on the same order book, with the same execution priority and shareholder rights.

- *Clearing and Settlement*: Trades would clear through the Depository Trust Company (DTC), which is building the necessary infrastructure for digital settlement.

- *Potential Timeline*: If approved, the first token-settled trades could occur as early as late 2026.

*Benefits and Implications:*

- *Increased Efficiency*: Tokenization could streamline and expedite the buying, selling, and transferring of stocks.

- *Improved Transparency*: Blockchain technology provides a transparent and tamper-proof record of ownership and transactions.

- *Global Demand*: Growing interest in tokenized assets, with European exchanges already launching tokenized asset platforms ² ³.

*Challenges and Concerns:*

- *Regulatory Framework*: The SEC needs to approve the proposal and clarify rules around tokenized securities.

- *Market Structure*: The proposal challenges the traditional foundation of how equities are issued and settled.

- *Investor Protection*: Nasdaq emphasizes the need for regulated markets and genuine share ownership ³ ⁴.