Nasdaq is collaborating with U.S. regulators to introduce trading of tokenized securities, a move that could mark the first instance of such securities trading on a major U.S. stock exchange. This comes amid rising global demand for tokenized assets and efforts to bring blockchain-based settlement into the national market system.

The SEC unveiled a rulemaking agenda that includes potential amendments to allow crypto trading on national securities exchanges and alternative trading systems. Nasdaq filed a proposal to tweak its rules to allow for trading of listed stocks in traditional digital or tokenized form. Coinbase and major banks have also shown interest in tokenized assets.

Nasdaq believes that markets can benefit from tokenization while still providing the protections of the national market system. Critics warn of new systemic risks, emphasizing the need for stringent regulation. Nasdaq’s proposal to trade tokenized securities aims to adhere to existing securities laws and investor protections.

Under new SEC chair Paul Atkins, efforts are underway to revamp cryptocurrency regulations and reduce burdensome rules criticized by Wall Street. Nasdaq’s proposal aims to ensure that tokenized securities have the same rights as traditional securities of an equivalent class. If approved, investors could see token-settled trades of securities by the end of the third quarter of 2026.

Read more at Yahoo Finance: Nasdaq makes push to launch trading of tokenized securities