Nasdaq is taking a bold step to bridge traditional finance and blockchain. In September 2025, the exchange submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to allow tokenized stocks to trade alongside conventional securities—potentially marking the first time major U.S. equities hit the blockchain.
Connecting Traditional and Digital Markets
The proposal would let investors trade tokenized stocks on the same platform as regular shares, with blockchain recording ownership and maintaining full shareholder rights—voting power, dividends, and all. Unlike some European or crypto-only platforms offering “price-only” tokens, Nasdaq emphasizes compliance and equal rights, leveraging existing clearing and settlement infrastructure via the Depository Trust Company (DTC).
Traditional Finance Meets Crypto
This move comes as major platforms like Coinbase, Robinhood, xStocks, Backed Finance, and Ondo Global Markets, have already been experimenting with tokenized stock products, highlighting growing demand for digital-native equity trading. Nasdaq itself recently invested $50 million in crypto exchange Gemini to expand custody and staking services, further connecting traditional Wall Street infrastructure with the crypto ecosystem. This positions Nasdaq at the forefront of regulated, mainstream tokenized finance.
Regulatory Landscape and Market Outlook
SEC has not yet acted on Nasdaq’s proposal, but the regulatory climate is gradually opening. Analysts note that if approved, tokenized stocks could launch as early as Q3 2026. SEC guidance has hinted at a willingness to allow digital assets on national exchanges, signaling growing alignment between innovation and oversight.
Market Impact: New Opportunities and Capital Flows
Tokenized stocks could boost market efficiency, reduce settlement times, and bring new capital- stablecoins, RWA, and other on-chain assets—into U.S. equities. Yet, challenges remain: safeguarding shareholder rights, avoiding “diluted tokens,” and educating investors on this new frontier. For the crypto ecosystem, Nasdaq’s move is a landmark step toward integrating traditional equities and blockchain finance.
How do you see tokenized stocks reshaping investment in the next few years? Will mainstream adoption happen faster than expected?
