Nasdaq looks to debut tokenized assets on its main exchange: Is this Wall Street's next frontier?

Nasdaq is looking to integrate tokenized assets into its core market, marking a key step toward financial digitalization and the expansion of Wall Street.

This week, the stock exchange filed a formal proposal with the U.S. Securities and Exchange Commission (SEC) to allow tokenized stocks to trade alongside their traditional versions on the same order book. If approved, the proposal could transform the way financial assets are bought, sold, and settled, paving the way for a more agile, transparent, and 24-hour market.

The proposal does not seek to create a new parallel market or offer unbacked synthetic products. On the contrary, Nasdaq proposes that tokenized assets should have exactly the same rights and privileges as their traditional counterparts. This includes voting rights, dividends, and regulatory protection. 

According to presentationThe intention is for these digital assets to coexist with conventional stocks under a solid legal framework, without altering the fundamental rules governing the stock market. 

Nasdaq plans to modernize asset settlement with blockchain

With its recent proposal, Nasdaq seeks to reinvent the way we understand tokenized stocks. Unlike many platforms that sell digital versions of stocks without offering real legal rights, this exchange proposes that each tokenized asset in its system be legally equal to the original asset. This means that investors would not only have a digital symbol, but a legitimate participation with all the benefits and protections that this entails.

Nasdaq's proposal responds to growing concerns about the proliferation of offshore platforms that trade "tokenized stocks" without legal guarantees. Therefore, the exchange seeks to distance itself from these practices and implement a model that prioritizes investor protection. The exchange argues that it is possible to adopt blockchain technology without abandoning the principles that have underpinned the financial market for decades. 

Thus, rather than seeking regulatory exemptions, as some ecosystem players have done, Nasdaq proposes responsible integration, aligned with existing rules.

The proposal also contemplates the possibility of transactions being settled directly on the blockchain, once the clearing infrastructure is in place. 

According to reports, the Depository Trust Company (DTC) is already working to adapt its systems to this new model. If implemented, on-chain settlement could significantly reduce processing times, eliminate intermediaries, and improve operational efficiency. All of this would represent a considerable technical advancement, with profound implications for market architecture.

Tokenization will be a game changer: 24/7 markets and on-chain settlement

One of the most disruptive and striking aspects of Nasdaq's proposal is the possibility of enable a 24/7 operating market. 

Unlike the current system, which operates at defined times and relies on multiple intermediaries for trade settlement, the tokenized model proposed by the exchange would allow continuous, automated and verifiable transactions in real timeThis would benefit not only retail investors who operate outside of traditional business hours, but also institutions seeking greater flexibility and speed in their investment strategies.

The idea of ​​a market without trading hours is not new in the crypto world, but its adoption by a regulated exchange like Nasdaq marks a turning point. Until now, digital assets have operated in a separate ecosystem, with its own rules and risks. However, Nasdaq's proposal seeks to bridge that gap, integrating the best of both worlds: the efficiency and accessibility of blockchain technology with the security and oversight of the traditional financial system.

This movement also comes within a favorable political context. Under President Donald Trump's administration, Congress has begun working on legislation to more clearly define how tokenized assets should be regulated. The discussion includes topics such as custody, auditing, and reporting, and seeks to establish a functional division between the jurisdiction of the SEC and the Commodity Futures Trading Commission (CFTC). The goal is to allow real-world assets to be moved on-chain without needing to change their legal classification.

Meanwhile, traditional players such as Citadel Securities have expressed support for a robust regulatory approach. In a letter sent to the SEC in July, the firm recommended avoiding exemptions and focusing on ensuring market liquidity under investor protection standards. This support suggests that Nasdaq's proposal could find allies among incumbents, provided the balance between innovation and regulation is maintained.

A new financial architecture under construction

Nasdaq's proposal is not an isolated experiment. It's part of a broader trend in which banks, exchanges, and technology firms are exploring the tokenization of traditional assets. JPMorgan, for example, has publicly discussed the possibility of tokenizing deposits and funds. This convergence between traditional finance and blockchain technology is gaining traction, and Nasdaq seeks to lead that change from a regulated and structured position.

If the SEC approves the proposal, Nasdaq would become the first US exchange to list tokenized assets under federal supervision. This would not only validate the model but could accelerate the adoption of tokenization in other market segments. Funds, bonds, and other instruments could follow suit, transforming the way financial products are structured and traded.

Beyond the technical aspects, what is at stake is the very architecture of the financial system. Tokenization is not just a tool to improve efficiency; it is an opportunity to redefine how value is accessed, owned, and exchangedA 24/7 market, free of unnecessary friction and intermediaries, could democratize access to financial assets and open up new possibilities for investors around the world.

In that sense, Nasdaq's proposal represents much more than a technological innovation. It is a declaration of principles about how the market should evolve in the digital age: with responsibility, with oversight, but also with vision. If it materializes, we will be witnessing a new frontier for Wall Street, one that combines the strength of the past with the potential of the future.