By Christopher Marshall
September 8, 2025 — In a move that could fundamentally transform how Americans trade stocks, Nasdaq Inc. has filed a formal proposal with the U.S. Securities and Exchange Commission (SEC) requesting permission to allow investors to trade tokenized versions of equities and exchange-traded products (ETPs) on blockchain-based platforms.
The proposal, detailed in SEC filing 34-100847, represents the most significant attempt by a major U.S. exchange to integrate distributed ledger technology into traditional securities trading infrastructure. If approved, the framework would enable real-time settlement, fractional ownership, and 24/7 trading capabilities that could revolutionize capital markets.
“This proposal represents the convergence of traditional finance and blockchain technology in a way that could fundamentally alter how Americans interact with capital markets,” said blockchain analyst Maria Rodriguez of Digital Asset Research.
The Mechanics of Tokenized Trading
Under Nasdaq’s proposed framework, traditional securities would be represented as digital tokens on a permissioned blockchain network, maintaining identical shareholder rights while enabling enhanced functionality. The system would operate parallel to existing trading infrastructure, allowing investors to choose between conventional and tokenized versions of the same securities.
“The race to integrate blockchain technology into traditional markets is accelerating globally, and this proposal puts Nasdaq at the forefront of that evolution,” noted fintech analyst James Morrison of Blockchain Capital Research.
Implementation Timeline and Next Steps
The SEC filing will undergo a standard public comment period, allowing industry stakeholders to provide feedback on technical specifications and regulatory implications. Nasdaq officials estimate that pilot programs with select institutional clients are expected to commence in early 2026, pending regulatory clearance.
“This represents a multi-year journey toward modernizing capital markets infrastructure, and we’re committed to doing it right,” emphasized Nasdaq’s Chief Technology Officer, Brad Peterson.
Conclusion
Nasdaq’s tokenization proposal represents a watershed moment for American capital markets, potentially bridging the gap between traditional finance and emerging blockchain technology. While regulatory approval and technical implementation challenges remain, the initiative signals a fundamental shift toward more efficient, accessible, and technologically advanced securities trading.
The success or failure of this proposal will likely influence how other major exchanges approach blockchain integration and could establish the regulatory template for tokenized securities trading across global markets. As the SEC review process unfolds, market participants will be watching closely to see whether traditional finance and blockchain technology can successfully converge within America’s highly regulated equity markets.
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About the Author: This analysis was prepared by the Crypto Corridor team with expertise in blockchain technology and securities regulation.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. All information is current as of publication date and subject to change based on regulatory developments.blockchain technology.”
The revolutionary aspect lies in the seamless integration: upon order entry, participants can select whether to clear and settle in regular or tokenized form, with the exchange communicating these instructions to the Depository Trust Corporation (DTC). Critically, both forms would trade under identical order entry and execution rules, ensuring market integrity while expanding technological capabilities.
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“We’re proposing that we use the current infrastructure of U.S. markets to enable tokenized security trading. There’s a lot of demand across the globe for Nasdaq-traded securities, and there’s this tokenization technology that has emerging interest.”
— Chuck Mack, Senior Vice President of North American Markets, Nasdaq
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Conclusion: A Watershed Moment for Digital Finance
Nasdaq’s SEC filing represents more than a technological upgrade—it signals a fundamental shift toward integrating blockchain capabilities into the bedrock of American ca—a process that will unfold over the coming months as the financial industry watches this historic development.
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About the Author: This analysis was prepared by PRAI News financial reporting team with expertise in securities regulation and blockchain technology.
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