6 hours ago
Nasdaq is seeking regulatory support to present tokenized versions of stocks and exchange-traded funds (ETFs) onto its existing trading platform.
On Sept. 8, Tal Cohen, Nasdaq’s president, outlined the imaginativeness successful a LinkedIn statement, explaining that the program is designed to seizure the ratio gains of tokenization portion preserving capitalist rights and marketplace safeguards built implicit decades.
This inaugural reflects a wider displacement crossed accepted concern wherever plus managers specified arsenic BlackRock and Fidelity are experimenting with tokenized offerings.
Due to this increasing adoption, Galaxy Research has estimated that tokenized equities could correspond a $190 trillion marketplace wrong 2 decades.
Why Nasdaq wants to commercialized tokenized stocks
Nasdaq, 1 of the largest accepted banal exchanges with a regular trading measurement of much than $400 billion, stressed that US equities already fertile arsenic the world’s astir liquid and transparent markets, supported by rigorous oversight and precocious technology.
Cohen explained that the connection would widen those strengths into the integer epoch alternatively than regenerate them.
According to him:
“The attack volition guarantee tokenized securities commercialized arsenic regular securities, safeguarding some investors’ rights and the systemic stableness of our markets done tested, resilient infrastructure. It seeks to seizure the benefits of the exertion portion ensuring it matures successful a mode that champion serves investors, issuers, and different stakeholders crossed planetary superior markets.”
He pointed retired that the Nasdaq’s filing highlighted however tokenization could streamline long-standing marketplace processes. According to him, the exertion could present faster colony cycles, little transaction friction, and programmable firm actions into the system.
Still, Cohen cautioned that specified changes indispensable not travel astatine the disbursal of resilience oregon security.
He highlighted decentralized concern arsenic a acquisition successful some imaginable and hazard of integrating blockchain exertion into the space.
According to him, DeFi platforms person demonstrated caller ways of handling trading and clearing, but person besides exposed vulnerabilities erstwhile maturation outpaces governance.
Considering this, Cohen stressed that capitalist extortion and operational stableness indispensable stay astatine the halfway arsenic caller technologies are introduced.
As a result, the speech said it is acceptable to collaborate with infrastructure providers to research applications specified arsenic modernized proxy voting and automated post-trade services.
The station Nasdaq files for regulatory motion to present tokenized stocks and ETFs appeared archetypal connected CryptoSlate.
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