Nasdaq has sought a rule change from the U.S. Securities and Exchange Commission (SEC) to allow the trading of stocks in a tokenized form. This proposal reflects the growing interest in asset tokenization within the financial sector. Nasdaq believes that the tokenization of securities can offer the same benefits as traditional trading systems while ensuring regulatory compliance. Under the proposal, customers could opt to trade securities using a digital representation of ownership, which can be either backed or unbacked by blockchain technology. Participants will indicate their preference for tokenized trade orders through a specific flag when placing orders. This initiative is seen as part of a broader momentum for tokenization observed recently, with various firms exploring similar paths. Nasdaq has emphasized that the existing regulatory framework, established by Congress, comprehensively covers tokenized securities, suggesting a seamless integration of tokenization into the national market system.

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