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Nasdaq Advances Tokenized Stock Proposal as Regulatory Review Intensifies

Nasdaq Advances Tokenized Stock Proposal as Regulatory Review Intensifies

CryptonewslandCryptonewsland2025/11/30 13:03
By:by Austin Mwendia
  • Nasdaq pushes ahead with its plan for tokenized stocks while preparing for detailed SEC review and feedback.
  • Tokenized equity gains attention as major firms test blockchain based versions of traditional shares.
  • Crypto leaders raise doubts about how tokenized stocks may support broader digital markets.

Nasdaq is moving its tokenized stock proposal to the front of its regulatory agenda. The exchange aims to prepare detailed responses for upcoming SEC questions. The proposal arrived on Sept. 8 and seeks permission to list and trade digital stock representations on the exchange. 

Nasdaq digital assets chief Matt Savarese said the exchange has made its tokenized-stock proposal a top priority and will work “as fast as we can” with the SEC. He emphasized that Nasdaq isn’t trying to upend the existing system but aims to bring tokenization into the mainstream…

— Wu Blockchain (@WuBlockchain) November 30, 2025

These tokens would mirror traditional shares while using blockchain technology to record ownership. The exchange expects a broad range of public comments, and it plans to address them as part of the review. The timeline remains uncertain, yet internal preparation continues at a steady pace.

Strategy Centers on Market Stability

Nasdaq’s leadership stresses that the plan does not aim to disrupt existing market structures. The approach focuses on gradual integration and cooperation across the financial sector. The exchange intends to position tokenization as an optional layer rather than a replacement for current systems. 

The method centers on investor protection and compliance with existing regulatory standards. The exchange continues to present the initiative as a controlled step forward that aligns with established market expectations. It also aims to encourage collaborative adoption rather than rapid structural change.

Industry Context Shapes Expectations

Recent remarks from industry leaders highlight broader interest in tokenized stocks. In October, Robinhood’s executive team described tokenization as a future driver of financial transformation. Earlier in September, Galaxy Digital became the first Nasdaq-listed company to tokenize its equity. The firm used the Solana network to issue these digital versions. Moreover, Coinbase announced plans to launch tokenized US stocks allowing 24 hour trading and lower transaction costs.

This development increased attention across both traditional and digital markets. Discussions now include long-term efficiency gains, new trading use cases, and potential liquidity expansion. Yet adoption depends on clear legal frameworks and consistent oversight. Market participants continue to weigh the benefits against operational risks.

Skepticism Remains Within Crypto Circles

Some crypto-focused firms question the value of tokenized stocks for the broader ecosystem. In October, Ondo Finance urged the SEC to delay Nasdaq’s tokenized stock plan over fairness and transparency concerns in settlement details. Leaders from Dragonfly shared concerns that layer-2 networks could dilute value flows across blockchains. They argue that these stocks may not strengthen the crypto economy as much as some expect. 

The view suggests that value could remain within traditional markets instead of circulating through major crypto networks. This debate adds caution to the wider conversation. It also reflects uncertainty about how tokenized equities will interact with decentralized platforms. Despite these concerns, interest remains high as tokenization becomes a recurring topic for both industries. Nasdaq continues to prepare for the next phase of regulatory review as tokenized equity gains wider attention across markets.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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