Nasdaq Allows Tokenized Stocks Trading, Enhancing Market Efficiency
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Market Innovation: In early September, Nasdaq filed a rule change with the SEC to allow tokenized stocks and exchange-traded products to trade on its platform, marking an initial breakthrough for blockchain technology in U.S. markets, despite securities being digital for decades.
- Liquidity Enhancement: The mobility of tokenized Treasuries, bonds, and stablecoins will significantly increase, enabling assets to be transferred and reused quickly, thereby achieving capital efficiencies unattainable within the traditional T+1 framework.
- Infrastructure Development: Over the next five years, firms that can effectively manage and transform tokenized collateral will dominate capital markets, driving the industry towards greater efficiency, particularly in derivatives markets.
- Strategic Implications: The widespread adoption of tokenization could become mainstream by 2030, allowing banks and asset managers to achieve faster and more transparent settlement processes through stablecoins and tokenized bonds, enhancing market competitiveness.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
