The US Nasdaq stock exchange is prioritizing the approval of its proposal to offer tokenized stocks, according to Matt Savarese, the exchange”s head of digital assets strategy. During a recent CNBC interview, Savarese expressed confidence in their readiness to address any inquiries from the SEC regarding this initiative. “We”ll just move as fast as we can,” he stated when asked about the potential for SEC approval within the year.
Nasdaq”s proposal, submitted on September 8, aims to enable investors to trade stock tokens—digital representations of shares in publicly traded companies—on the exchange. Savarese clarified that Nasdaq is not aiming to disrupt existing investment systems but rather to integrate tokenization into mainstream finance responsibly. “We want everyone to come along for that ride and bring tokenization more into the mainstream,” he emphasized.
This initiative comes on the heels of remarks from industry leaders about the future of tokenization. Recently, Robinhood CEO Vlad Tenev suggested that tokenization could fundamentally transform the financial system. Conversely, the crypto sector remains divided on the benefits of tokenized stocks. For instance, Rob Hadick from crypto venture firm Dragonfly pointed out potential drawbacks, indicating that if tokenized stocks utilize layer-2 networks, there could be value “leakage” that fails to benefit the broader crypto ecosystem.
Savarese noted Nasdaq”s historical role as a market innovator, highlighting its transition from paper-based trading to electronic systems as a pivotal moment in financial history. As discussions around tokenized equities gain traction, major firms like Galaxy Digital are already taking steps to engage with blockchain technology—having recently tokenized its equity on the Solana network.
As the conversation surrounding tokenized stocks evolves, it will be essential to monitor how Nasdaq navigates regulatory challenges and industry skepticism. The outcome of these developments could significantly impact both traditional markets and the cryptocurrency landscape.
