NASDAQ, the second largest stock exchange by market capitalization, is seeking regulatory approval from the US Securities regulator to list tokenized stocks.
Nasdaq Filed A request Monday with the US Securities and Exchange Commission (SEC) requesting a change in the rule that will allow the company to list tokenized stocks.
The exchange operator has specifically requested to change certain rules, including the meaning of a security, to exchange tokenized stocks under both implementation and documentation rules as traditional security, given tokenized versions are considered equal.
According to In a report by Bloomberg, the NASDAQ request with the SEC exceeds a technical rule change as it relates to the foundations of how the stocks are issued and repaired.
Tokenized assets should be clearly labeled
One of NASDAQ’s changes is that tokenized properties should be clearly labeled to ensure that all participants, including those responsible for coating and regulating, such as the Deposit Company of Trust, is properly processed these trading.
“A security can be exchanged with the Nasdaq Market Center in either traditional form (a digital representation of ownership and rights, but without the use of the shared ledger (‘blockchain’ technology)) or tokenized form (a digital representation of the owner and rights that use blockchain technology,”
In addition, Nasdaq also said that tokenized properties would have the same priority in which the exchange conducts a sequel -as it does in traditional stocks.
If approved, US regulation exchanges, including NASDAQ, are authorized to list tokenized shares on their platforms, which can boost liquidity for blockchain -based versions of traditional security.
Nasdaq steps against “silered trading venues”
In filing, Nasdaq emphasized the importance of placing tokenize security under Purview of established security market players, which contradicts it on the “siled trading venues,” where investors are “incompatible with the best market prices.
“Although tokenization technology presents the novel’s capabilities where to record evidence of ownership and security transactions, the trading of tokenized securities may be, and it must happen mainly as prescribed by Congress when it enforces and subsequently amended the law,” the company says, increasing: Adding: Adding: Adding:
“Such trade should occur in regulated markets, especially national security exchanges, alternative trading systems, and the Finra (Financial Industry Regulatory Authority) regulated broker-dealers.”
The Nasdaq also promotes for tokenized security to exchange “within the context of a coherent market system.”
Concerns about Europe
In addition to pushing regulators to bring tokenization under Purview of established market players, Nasdaq has expressed concerns about the increasing number of offerings that provide exposure to tokenized US stocks in Europe.
“Some trading platforms aim to offer investors accessing tokenized ‘US equities,’ but they do not provide investors of actual sharing with US companies,” Nasdaq wrote, added:
“Instead they provide investors of digital rights to traditional digital shares that the platforms themselves buy and hold on to their own accounts. These digital rights do not consist of the full range of rights where those with traditional digital shares are right, including voting rights ()”
Nasdaq’s proposal came in the middle of a growing trend for Real-world assets (RWAs) Worldwide, with many platforms selective to list tokenized versions of US investment products such as Tesla sharing or Funds exchanged by exchange (ETF) For users in constituents such as Europe.
Related: Boerse Stuttgart opens a pan-European platform for tokenized assets
“The fact is that users in the US already have relatively seamless access to traditional equities such as stocks and ETFs through well-established brokerage platforms,” Alchemy Pay’s Ailona Tsik said to the cointelegraph in June while commenting on the platform cooperation on the Equity Tokenization Platform’s platform platform.
“Our mission to this product is to bridge the gap for users outside the US, especially in regions where direct access to such owners is traditionally limited or unavailable,” the EXEC said.
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