Nasdaq has secured SEC approval to trade tokenized stocks and ETFs on blockchain technology, marking a significant shift in how U.S. equities may be accessed and traded. This framework allows for the issuance and settlement of certain securities as blockchain-based tokens, enabling potential 24/7 global trading while still operating within the traditional market structure.
This development is crucial for financial markets as it introduces blockchain efficiencies, such as faster settlement times, without fully disrupting existing intermediaries like brokers and the Depository Trust & Clearing Corporation. While this move is expected to benefit global investors seeking continuous access to U.S. equities, critics argue that it falls short of the transformative potential seen in more progressive jurisdictions, where tokenization is less encumbered by legacy systems.
For market professionals, this approval signals a gradual integration of blockchain into traditional finance, suggesting that while the U.S. is taking steps toward modernization, it may still lag behind other regions in embracing the full capabilities of tokenization. For a deeper dive into the implications of this development, I recommend exploring the full article.
Source: coindesk.com