Nasdaq has filed with the Securities and Exchange Commission (SEC) to offer tokenized securities.
Tokenization, or digital securities, can leverage technology to issue and manage securities more easily. Tokenization is an inevitable evolution and a change that can benefit all parties, including platforms that offer primary issuance and trading, as well as investors and issuers. Tokenization can also improve overall security.
The Form 19b-4 was filed with the SEC on Monday (September 8, 2025) as a proposal to amend the Exchange’s rules to enable the trading of securities on the Exchange in tokenized form.
The document explains:
“The existing regulatory structure mandated by Congress applies to tokenized securities, regardless of whether such securities have certain unique properties (like the ability to be settled on a blockchain), much like it did when the SEC allowed securities to be decimalized and electronified and when exchange-traded funds and other novel securities were approved decades ago. As in those cases, no significant exemptions or parallel market structure constructs are needed for tokenized securities to trade alongside other securities.”
It is interesting to note that Nasdaq issues a word of caution regarding “certain platforms” in Europe, which are already offering digital assets that represent shares in US firms. There is no mention of US firms that are doing something similar.
Nasdaq has also posted a Q&A regarding tokenized securities. Next steps include a comment period where interested parties can provide feedback on the Nasdaq proposal.
Nasdaq is clearly interested in the broader crypto ecosystem as TradFi merges with the digital asset future.
Tokenization of securities is going to happen. The evolution also creates an opportunity for novel types of securities. Previously, the cost to create securities out of certain real-world assets was prohibitive, but technology should simplify and reduce costs, thus ushering in a new era of assets for investors. Tokenization will also improve the ecosystem for primary offerings for firms in need of growth capital.
