Nasdaq Files SEC Proposal to Enable Tokenized Securities Trading

Nasdaq took a step toward blending blockchain with traditional finance on Sept. 8, 2025, by submitting a filing to the Securities and Exchange Commission (SEC) in the United States. The move aims to let member firms and investors trade tokenized versions of equities and exchange-traded products (ETPs) on the Nasdaq Stock Market.

According to a LinkedIn post by Nasdaq President Tal Cohen, this integration could reduce friction in markets, speed up settlement times, and automate processes. Cohen noted the filing seeks to leverage US equities’ strengths, like robust oversight and investor safeguards, to scale blockchain benefits responsibly.

Details from Nasdaq’s newsroom Q&A reveal how the system would work. Participants could choose tokenized or traditional forms at order entry, with the Depository Trust Corporation (DTC) handling clearing and settlement for tokens.

According to Chuck Mack, Nasdaq’s Senior Vice President of North American Markets, the exchange anticipates that blockchain integration will streamline trading operations by reducing settlement times, improving transaction transparency, and creating a more seamless process from order execution to final clearing.

Mack explained that tokenized securities are digital representations on blockchain, but they hold the same value and rights as non-tokenized shares. This avoids creating separate markets that could dilute liquidity or transparency.

The filing opens for public comment, inviting industry input. Nasdaq views it as part of a broader evolution, responding to demand for innovation while prioritizing capital formation and market integrity.

This aligns with growing tokenization trends, as seen in BlackRock’s BUIDL fund on Ethereum and platforms like Robinhood offering tokenized stocks in Europe.

Tokenization Trends

Tokenization has gained traction since 2022, when the RWA market hovered around $5 billion, focusing on basic assets like stablecoins. By 2023, growth hit 308%, reaching $15 billion, with pilots from firms like Centrifuge enabling multichain RWAs, according to market reports.

In 2024, institutions accelerated adoption: BlackRock launched its BUIDL Treasury fund on Ethereum in March, surpassing $500 million by mid-year. Fidelity tokenized similar products, while the World Economic Forum noted potential for cross-border efficiency.

By Sept. 2025, the market exceeds $24 billion, up 380% from 2022. Recent moves include Ondo Finance tokenizing over 100 US stocks and ETFs on Ethereum and Trust Wallet integrating tokenized equities for millions of users.

Nasdaq’s proposal parallels these developments, bridging TradFi with DeFi by tokenizing listed securities, much like Robinhood’s EU platform offering 24/5 tokenized stock trading since early 2025.

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