Overview
- The SEC formally instituted proceedings and requested public comment on Nasdaq’s proposed rule change to list and trade blockchain-based representations of securities.
- Comment letters show divided views, with SIFMA backing the plan while Cboe Global Markets, Better Markets, and Ondo Finance register opposition.
- An SEC staff no-action letter allows DTCC’s DTC to run a tightly constrained pilot for tokenized entitlements, setting up a potential clearing and settlement path if the exchange proposal is approved.
- Nasdaq’s framework would place tokenized and traditional shares on the same order book, with settlement continuing through DTCC infrastructure.
- Industry trials are underway, including Galaxy Digital tokenizing its common stock on Solana, as the CFTC separately pilots the use of certain digital assets as derivatives collateral.