Nasdaq Prioritizes SEC Approval for Tokenized Stock Offerings
The US exchange Nasdaq is pushing forward with its proposal to offer tokenized versions of stocks listed on the exchange, with SEC approval being a top priority, according to Matt Savarese, head of digital assets strategy at Nasdaq. In an interview with CNBC, Savarese expressed the exchange’s commitment to moving quickly, stating, “We’re just going to move forward as quickly as we can.”
Savarese emphasized the importance of addressing public comments and responding to the SEC’s questions in a timely manner, saying, “I think we really need to assess where the public comments are coming in and then address and respond to the SEC’s questions as they come in. We hope to work with them as quickly as possible.” The proposal, submitted on September 8, aims to allow investors to buy and sell stock tokens, which are digital representations of stocks in publicly traded companies, on the stock exchange.
Nasdaq’s Approach to Tokenization
When asked about the potential impact on the traditional stock market, Savarese clarified that Nasdaq is not trying to overhaul the existing system. “We don’t intend to upend the system; we want everyone to join in and bring tokenization more into the mainstream,” he said. Instead, the exchange aims to introduce tokenization in a responsible and investor-led manner, in accordance with SEC rules.
Industry Perspectives on Tokenized Stocks
The concept of tokenized stocks has sparked both interest and skepticism within the crypto industry. Robinhood CEO Vlad Tenev has predicted that tokenization will “eventually engulf the entire financial system.” In contrast, Rob Hadick, general partner at crypto venture firm Dragonfly, has expressed concerns that tokenized stocks may not benefit the crypto industry as much as traditional markets.
Galaxy Digital CEO Mike Novogratz has also weighed in on the topic, announcing that his company became the first Nasdaq-listed company to tokenize its equity on a major blockchain, following its launch on the Solana network. As the discussion around tokenized stocks continues, it remains to be seen how the SEC will respond to Nasdaq’s proposal and what impact it will have on the broader financial landscape.
For more information on Nasdaq’s tokenization plans and the latest developments in the crypto industry, visit Cointelegraph.
