In September, Nasdaq outlined plans to support trading in tokenized stocks. The aim is that conventional and tokenized shares have the same rights, trade in the same way and have the same identification number (CUSIP). The tokenization aspect would be managed by the DTC as part of the post-trade process. Other than that, trading would take place as it does today, at the same trading hours and through brokers. According to Nasdaq’s rule change request to the SEC, DTC expects to be ready by the end of the third quarter of 2026, subject to regulatory approval.
Much of the paper points out that this option is superior to recent token stock offerings, many of which are essentially derivatives masquerading as stocks. He also pushed back against suggestions from companies like Coinbase to be able to trade stocks under regulatory exemptions.
“Nasdaq’s proposal will also avoid the risks inherent in other tokenization approaches that could potentially fragment liquidity and isolate it across particular trading platforms and blockchain technologies that are not interoperable,” he wrote.
Only four responses from organizations were received during the comment period, each representing a distinct interest group.
The article continues…
Want the full story? Pro subscribers benefit from in-depth articles, exclusive industry analysis, and early access to legislative updates that help you stay ahead of the competition. Join professionals who choose deeper insights over superficial information.
