Nasdaq has taken a formal step to bring blockchain technology into U.S. stock trading, filing a proposal with the Securities and Exchange Commission (SEC) to enable tokenized securities on its exchange.
Balancing Innovation With Stability
The exchange said tokenized securities would trade like traditional stocks, preserving investor rights and market stability. It noted that U.S. equities markets already operate at a massive scale with strong regulatory safeguards.
“The integration of tokenization and blockchain technology alongside traditional market infrastructure presents an exciting leap forward for the global financial system,” commented Tal Cohen, the President of Nasdaq.
“Significant advancements and successful applications of the technology are emerging across a range of asset classes, and tokenized securities are among the most closely watched developments,” he said.
Nasdaq’s plan seeks to capture the efficiency gains of blockchain while avoiding disruptions to existing systems. Nasdaq pointed to the rise of decentralized finance as evidence of how trading and clearing can evolve and as a cautionary tale of the risks of moving without safeguards.
The company stressed that governance and investor protection must be embedded from the start to ensure that tokenization strengthens rather than weakens market trust.
Working With Existing Infrastructure
Clearing houses, custodians, and other intermediaries remain critical to market operations. Nasdaq said its approach does not bypass these institutions but works with them to integrate blockchain-based processes, such as faster settlement cycles and modernized proxy voting, without undermining existing protections.
The SEC filing represents an early step in Nasdaq’s strategy to bridge traditional securities with blockchain. If approved, it would mark one of the most significant efforts yet to bring tokenization into mainstream U.S. markets.
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One of the benefits of tokenization is the 24/7 access to securities, an area Nasdaq has been working on. Early this year, the exchange announced that it would move to offer 24-hour trading in U.S. equities five days a week, in a bid to capture growing global demand for American stocks.
The exchange operator cited rising retail participation, broader financial literacy, and the expansion of digital trading platforms as drivers behind the shift. This would allow investors across time zones greater access to U.S. markets.
“Nasdaq will enable 24-hour trading on the Nasdaq Stock Market. Pending regulatory approval and alignment with critical industry infrastructure providers, we anticipate our timeline being in the second half of 2026,” Cohen said.
This article was written by Jared Kirui at www.financemagnates.com.
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