Nasdaq Pledges Swift Action on Tokenized Stock Launch as SEC Approval Intensifies

Nasdaq Accelerates Push for Tokenized Stocks

The Nasdaq Stock Exchange is moving quickly to bring tokenized versions of U.S.-listed equities into regulated markets, according to comments from Matt Savarese, the exchange’s head of digital assets strategy. Speaking at a financial technology forum in New York, the crypto chief said Nasdaq’s plan to enable blockchain-based stock trading under SEC oversight is “a top priority” for the company.

“We’ll just move as fast as we can,” Savarese said, responding to questions on whether the Securities and Exchange Commission (SEC) might approve the proposal this year. “We want to work with the SEC, answer their questions, and respond to public comments as quickly as possible,” he added.

Nasdaq filed its proposal on September 8, requesting permission to list and trade tokenized versions of publicly listed stocks on its platform. The initiative would allow investors to buy, sell, and transfer tokenized shares that are fully backed by their real-world counterparts, potentially transforming how ownership and settlement function in U.S. equity markets.

Savarese stressed that the move is not meant to disrupt or replace the traditional system but rather to extend its efficiency and accessibility using blockchain infrastructure. “We’re not looking at upending the system,” he said. “We want everyone — regulators, investors, and institutions — to come along for that ride and bring tokenization more into the mainstream.”

Regulatory Focus and Collaboration With the SEC

Nasdaq’s proposal comes as the SEC continues to evaluate how blockchain-based assets fit within the framework of U.S. securities law. While the agency has allowed limited experimentation in private tokenized funds and on-chain settlements, tokenized equities on a public exchange represent a far larger regulatory test.

Savarese acknowledged that Nasdaq’s team is preparing for an iterative review process. “It’s about evaluating where public comments come in, then responding to SEC questions as they come through,” he told CNBC. “We hope to move forward in a responsible, investor-led way, entirely under the SEC’s own rules.”

If approved, the system would operate under existing exchange and broker-dealer regulations, ensuring that tokenized shares retain the same ownership rights, dividend entitlements, and disclosure standards as traditional equities.

The SEC’s review process typically includes an open comment period, followed by rounds of clarifications and potential amendments. Market observers believe that Nasdaq’s established compliance infrastructure could make it the first U.S. exchange to gain regulatory clearance for on-chain stock trading.

This mirrors the growing regulatory alignment seen across platforms offering onramp crypto services for digital assets.

Industry Division Over Tokenized Equities

While Nasdaq’s initiative has drawn optimism from traditional finance, reactions across the crypto industry remain divided. Some view tokenized equities as a bridge between mainstream markets and blockchain innovation, while others see them as parallel systems that may not benefit existing crypto ecosystems.

Galaxy Digital CEO Mike Novogratz called tokenization “a transformative step for traditional finance,” noting in September that Galaxy had become the first Nasdaq-listed company to tokenize its own equity on the Solana blockchain.

However, Dragonfly general partner Rob Hadick offered a more cautious view. Speaking to Cointelegraph on October 1, he said tokenized stocks could benefit traditional markets but provide limited upside for the broader crypto sector. “If tokenized stocks live on layer-2 networks or private chains, the value may not flow back into Ethereum or the open crypto economy the way some expect,” Hadick warned.

Meanwhile, Robinhood CEO Vlad Tenev predicted in October that tokenization would “eventually eat the whole financial system,” underscoring how quickly the concept has entered mainstream discussion.

Despite mixed opinions, most analysts agree that Nasdaq’s regulated approach could set the tone for how traditional finance and blockchain technology converge.

Tokenization Gains Momentum Globally

Estimated global growth of tokenized assets through 2033. (Source: ledgerinsights.com)

Nasdaq’s move reflects a broader global race to tokenize financial assets. The London Stock Exchange (LSE) and Singapore Exchange (SGX) have both launched pilots for blockchain-based settlement and tokenized bond issuance.

According to Boston Consulting Group, the total market for tokenized real-world assets could exceed $16 trillion by 2030, with tokenized equities and bonds leading adoption.

Unlike private platforms or DeFi protocols, Nasdaq’s proposed system would operate under strict regulatory oversight, using blockchain primarily as a settlement layer rather than a speculative venue. This model could enable instant settlement, fractional ownership, and greater transparency, all while preserving compliance with existing investor protection rules. If successful, it may serve as a blueprint for other exchanges to follow suit.

Global interest in tokenization has grown alongside increased activity on platforms that allow users to swap crypto seamlessly across networks.

Technical and Legal Considerations

Sources familiar with the proposal say Nasdaq’s pilot system is designed to integrate seamlessly with existing clearing and custody infrastructure. Each tokenized stock would represent a 1:1 claim on a real equity share, recorded on a permissioned blockchain accessible to registered market participants.

Smart contracts would manage settlement, transfer rights, and corporate actions such as dividends or share splits. This framework could enable T+0 settlement, eliminating counterparty risk and reducing the capital required for collateralized trades.

However, several legal questions remain unresolved, including how beneficial ownership, custody, and cross-jurisdictional trading will be handled. Experts say these issues will determine whether tokenized securities remain a niche pilot or become a standard market feature.

Market Impact and Strategic Implications

If Nasdaq’s proposal gains approval, it could trigger a wave of modernization across U.S. capital markets. Tokenized equities would allow institutions and retail investors to trade in real time, access fractional shares, and potentially reduce settlement fees that currently total billions annually.

The initiative also aligns with Nasdaq’s broader digital asset strategy, which includes custody technology partnerships and regulatory infrastructure for tokenized funds. By taking a proactive stance, Nasdaq appears intent on ensuring that tokenization happens inside the system rather than through unregulated platforms abroad.

Conclusion

Nasdaq’s commitment to advancing tokenized stock trading marks a pivotal moment in the evolution of traditional finance. By pursuing regulatory clarity and emphasizing collaboration with the SEC, the exchange is positioning itself at the forefront of a shift that could reshape how markets function.

Savarese’s message was clear: Nasdaq is not chasing hype but building infrastructure. If approved, Nasdaq’s proposal could usher in a new era of digital capital markets, where regulated, tokenized assets trade alongside their traditional counterparts, bridging the gap between blockchain technology and global finance.

As digital products evolve, solutions such as virtual crypto cards show how digital asset utilities are becoming more integrated into everyday financial systems.