The U.S. Securities and Exchange Commission (SEC) has approved Nasdaq's proposed framework for tokenized stock trading. This framework aims to allow the trading of tokenized stocks on the Nasdaq exchange while ensuring consistency with traditional stocks in several key aspects.
Details of the Tokenized Trading Framework
According to documents disclosed by the SEC, tokenized stocks will have the same stock codes, trading prices, and investor rights as traditional stocks. Additionally, they will share the same CUSIP identification numbers. This design ensures information consistency between the two forms of stocks in the market.
To address concerns raised during the proposal review process, the SEC document clearly states that the relevant market monitoring systems, reporting standards, and settlement timelines will remain unchanged. These measures are intended to maintain market stability and fairness.
Limited Pilot Scope and Participants
It is noteworthy that the trading options for tokenized stocks are limited to “qualified participants.” However, these participants can still freely choose between traditional securities settlement methods and blockchain-based settlement methods. This flexibility introduces new settlement options without altering existing trading conditions. At the same time, the prices of tokenized stocks and traditional stocks will remain synchronized at all times, eliminating potential price discrepancies between the two forms.
Role of the Depository Trust Company (DTC) and Industry Collaboration
The Depository Trust Company (DTC) will be responsible for clearing and settling transactions of tokenized stocks. This initiative will be part of a broader pilot program. Nasdaq initially submitted the proposal last September and has since been working closely with the DTC to continuously refine and optimize the trading framework.
The SEC stated that these developments reflect the growing interest in tokenizing traditional financial assets within the industry.