In September, Nasdaq outlined plans to support the trading of tokenized stocks. The aim is for conventional and tokenized stocks to have the same rights, trade in the same manner, and have the same identification number (CUSIP). The tokenization aspect would be handled by the DTC as part of the post trade process. Apart from this, trading would happen as it does today during the same trading hours and via brokers. According to the Nasdaq rule change request to the SEC, the DTC plans to be ready in late Q3 2026, subject to regulatory approval.
A major part of the document emphasized that this option is superior compared to recent tokenized stock issuances, many of which are essentially derivatives posing as stocks. It also pushed back against suggestions from the likes of Coinbase to be able to trade stocks under regulatory exemptions.
“Nasdaq’s proposal will also avoid risks inherent in other tokenization approaches that would potentially fragment liquidity and isolate it to particular trading platforms and blockchain technologies that are not interoperable,” it wrote.
Only four responses from organizations were received during the comment period, each representing a distinct interest group.
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