# Nasdaq Proposes Tokenized Securities Trading to SEC ∞ Regulation

**Published:** 2025-09-18
**Categories:** Regulation

---

![The image showcases tall, reflective rectangular structures emerging from a vast body of rippling water, flanked by dynamic white cloud formations and scattered blue particles. A prominent, textured white mass, resembling a complex brain or cloud, sits partially submerged in the water on the right](https://incrypthos.com/wp-content/uploads/2025/09/blockchain-ecosystem-pillars-mirroring-decentralized-data-and-liquidity-pools.jpeg)

![A sophisticated, black rectangular device showcases a transparent blue top panel, offering a clear view of its meticulously engineered internal components. At its core, a detailed metallic mechanism, resembling a precise horological movement with visible jewels, is prominently displayed alongside other blue structural elements](https://incrypthos.com/wp-content/uploads/2025/09/blockchain-protocol-engine-transparent-hardware-security-module.jpeg)

## Briefing

Nasdaq has formally submitted a proposed rule change to the U.S. Securities and Exchange Commission (SEC), seeking to enable the trading of tokenized equity securities and exchange-traded products (ETPs) on its established markets. This strategic initiative aims to integrate blockchain technology into the core U.S. equities infrastructure, allowing for optional tokenized settlement through the [Depository Trust Corporation](https://incrypthos.com/adoption/hex-trust-enables-institutional-access-to-ethereum-liquid-staking/) (DTC) while preserving all existing investor protections and market integrity standards. The proposal, filed on September 8, 2025, is now open for public comment, marking a critical juncture for digital asset integration within traditional finance.

![The image displays a highly detailed, metallic-grey electronic component with blue accents and a textured grid of small units, positioned centrally. It is surrounded and partially integrated with dark, glossy, organic-like structures that extend into the soft-focus background](https://incrypthos.com/wp-content/uploads/2025/09/Advanced-ASIC-Unit-Processing-Decentralized-Ledger-Smart-Contract-Transactions.jpeg)

## Context

Prior to this action, the U.S. regulatory landscape for tokenized securities operated largely without a clear, integrated framework within established national exchanges. While interest in blockchain-based assets grew, the absence of explicit rules for their trading alongside [traditional counterparts](https://incrypthos.com/adoption/jpmorgan-embraces-stablecoins-for-traditional-finance-integration/) on regulated venues created market fragmentation and uncertainty regarding fungibility, settlement, and investor safeguards. This situation posed a compliance challenge for firms seeking to leverage tokenization benefits within a robust, regulated environment.

![The image displays a close-up of a translucent blue tubular structure, containing a white, granular substance flowing along its interior. Blurred abstract blue and white forms are visible in the background, suggesting a complex network](https://incrypthos.com/wp-content/uploads/2025/09/decentralized-ledger-data-stream-tokenized-asset-propagation-infrastructure.jpeg)

## Analysis

Nasdaq’s proposal directly impacts the operational architecture of U.S. equity markets by introducing a mechanism for tokenized securities to coexist and trade fungibly with their traditional counterparts. This alters compliance frameworks by requiring firms to understand and adapt to a dual-format trading environment, where the choice of [tokenized settlement](https://incrypthos.com/adoption/jpmorgan-executes-tokenized-us-treasury-settlement-on-public-blockchain/) is an option post-trade, managed by the DTC. The chain of cause and effect for regulated entities involves potential upgrades to trading and settlement systems, ensuring that tokenized assets adhere to existing surveillance, reporting, and investor protection protocols. This represents a critical update for market participants seeking to leverage blockchain efficiencies while maintaining regulatory adherence.

![A high-fidelity rendering showcases a disassembled mechanical assembly featuring white, metallic, and translucent blue components against a blurred dark background. The central elements are several glowing blue, disc-shaped layers, intricately patterned and suspended between robust mechanical housings, suggesting an advanced data processing unit](https://incrypthos.com/wp-content/uploads/2025/09/modular-blockchain-architecture-digital-asset-tokenization-framework.jpeg)

## Parameters

- **Proposing Entity** ∞ Nasdaq Stock [Market](https://incrypthos.com/news/market/) LLC

- **Regulatory Authority** ∞ U.S. Securities and [Exchange Commission](https://incrypthos.com/adoption/deutsche-borse-subsidiary-launches-institutional-off-exchange-digital-asset-settlement/) (SEC)

- **Filing Type** ∞ Proposed Rule Change (Form 19b-4, SR-NASDAQ-2025-072)

- **Filing Date** ∞ September 8, 2025

- **Asset Classes** ∞ [Equity Securities](https://incrypthos.com/regulation/sec-chair-atkins-launches-project-crypto-redefining-token-securities/), Exchange Traded Products (ETPs)

- **Core Principle** ∞ Fungibility with traditional securities, identical rights and benefits, existing [market infrastructure](https://incrypthos.com/news/market-infrastructure/) for trading and settlement

- **Settlement Mechanism** ∞ Depository [Trust Corporation](https://incrypthos.com/adoption/hex-trust-enables-institutional-access-to-ethereum-liquid-staking/) (DTC) for tokenized settlement

- **Current Status** ∞ Open for [public comment](https://incrypthos.com/adoption/jp-morgan-settles-tokenized-us-treasuries-on-public-ethereum/)

![A white, circular mechanical component, featuring a bright blue glowing core, is shown in dynamic interaction with a larger, intricate translucent blue crystalline structure. The component appears to be detaching or integrating, with smaller white elements visible, all set against a muted grey background, highlighting a sophisticated technological process](https://incrypthos.com/wp-content/uploads/2025/09/distributed-ledger-node-activating-cryptographic-primitive-execution.jpeg)

## Outlook

The SEC’s review of Nasdaq’s proposal initiates a crucial public comment period, which will shape the final regulatory stance on tokenized securities within established U.S. markets. This action could set a significant precedent for other jurisdictions considering the integration of [blockchain technology](https://incrypthos.com/news/blockchain-technology/) into traditional financial infrastructure. Potential second-order effects include accelerated innovation in asset tokenization, increased institutional adoption of digital assets, and a clearer pathway for regulated entities to offer blockchain-enabled financial products, fostering greater market efficiency and investor choice.

![A detailed view presents a complex metallic cylindrical component, adorned with bands of vibrant blue geometric crystals and a textured white, porous substance. The metallic elements showcase precision engineering, while the crystalline and frothy textures add a dynamic, abstract quality to the structure](https://incrypthos.com/wp-content/uploads/2025/09/Blockchain-Protocol-Validation-Engine-Visual-Representation.jpeg)

## Verdict

**Nasdaq’s proactive SEC filing for [tokenized securities](https://incrypthos.com/news/tokenized-securities/) trading represents a foundational step towards seamlessly integrating blockchain innovation into established U.S. capital markets, providing a clear, regulated pathway for digital asset evolution.**

Signal Acquired from ∞ <a href="https://www.nasdaq.com/newsroom/qa-nasdaqs-new-proposal-tokenized-securities?utm_source=incrypthos.com&utm_medium=referral&utm_campaign=noo-engine.com" target="_blank" rel="nofollow">Nasdaq.com</a>

## Glossary

<a href="https://incrypthos.com/adoption/hex-trust-enables-institutional-access-to-ethereum-liquid-staking/" class="glossary-item-box">

## depository trust corporation 

Hex Trust's integration of stETH custody and liquid staking streamlines institutional engagement with Ethereum, blending robust security with enhanced capital efficiency in DeFi. </a><a href="https://incrypthos.com/adoption/jpmorgan-embraces-stablecoins-for-traditional-finance-integration/" class="glossary-item-box">

## traditional counterparts 

This strategic pivot by JPMorgan integrates stablecoins to streamline cross-border payments and asset tokenization, enhancing operational efficiency across global financial workflows. </a><a href="https://incrypthos.com/adoption/jpmorgan-executes-tokenized-us-treasury-settlement-on-public-blockchain/" class="glossary-item-box">

## tokenized settlement 

This integration streamlines tokenized asset settlement, enhancing capital efficiency and interoperability across financial ecosystems. </a><a href="https://incrypthos.com/news/market/" class="glossary-item-box">

## market 

Definition ∞ In the financial and digital asset context, a market represents any venue or system where assets are exchanged between participants, driven by supply and demand dynamics. </a><a href="https://incrypthos.com/adoption/deutsche-borse-subsidiary-launches-institutional-off-exchange-digital-asset-settlement/" class="glossary-item-box">

## exchange commission 

This new off-exchange settlement mechanism streamlines institutional digital asset trading, optimizing capital efficiency and mitigating counterparty risk. </a><a href="https://incrypthos.com/regulation/sec-chair-atkins-launches-project-crypto-redefining-token-securities/" class="glossary-item-box">

## equity securities 

This SEC initiative reclassifies most crypto assets as non-securities, necessitating a recalibration of compliance frameworks and unlocking market innovation. </a><a href="https://incrypthos.com/news/market-infrastructure/" class="glossary-item-box">

## market infrastructure 

Definition ∞ Market Infrastructure refers to the foundational systems, platforms, and rules that facilitate the trading and settlement of financial assets. </a><a href="https://incrypthos.com/adoption/hex-trust-enables-institutional-access-to-ethereum-liquid-staking/" class="glossary-item-box">

## trust corporation 

Hex Trust's integration of stETH custody and liquid staking streamlines institutional engagement with Ethereum, blending robust security with enhanced capital efficiency in DeFi. </a><a href="https://incrypthos.com/adoption/jp-morgan-settles-tokenized-us-treasuries-on-public-ethereum/" class="glossary-item-box">

## public comment 

This landmark settlement streamlines the transfer and collateralization of U. </a><a href="https://incrypthos.com/news/blockchain-technology/" class="glossary-item-box">

## blockchain technology 

Definition ∞ A blockchain is a distributed, immutable ledger that records transactions across many computers. </a><a href="https://incrypthos.com/news/tokenized-securities/" class="glossary-item-box">

## tokenized securities 

Definition ∞ Tokenized securities are traditional financial instruments, such as stocks or bonds, that have been represented as digital tokens on a blockchain. </a>

**Tags:** [Asset](https://incrypthos.com/news/asset/), [Markets](https://incrypthos.com/news/markets/), [Financial](https://incrypthos.com/news/financial/), [Products](https://incrypthos.com/news/products/), [Market Infrastructure](https://incrypthos.com/news/market-infrastructure/), [Digital Assets](https://incrypthos.com/news/digital-assets/)	

## Discover More

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### [Ethereum Network Activity Surges, Signaling Robust User Engagement](https://incrypthos.com/insights/ethereum-network-activity-surges-signaling-robust-user-engagement/)
![A translucent blue hardware wallet, featuring a smooth, rounded chassis, securely encapsulates cryptographic primitives. Two clear, tactile interface elements, potentially for multi-signature transaction confirmation or seed phrase recovery, protrude from its surface. A dark rectangular port, likely for USB connectivity or data transfer, is integrated into the side. This device symbolizes robust cold storage solutions for private keys, ensuring enhanced blockchain security and self-sovereign digital identity within the Web3 ecosystem, facilitating secure asset custody and tokenization.](https://incrypthos.com/wp-content/uploads/2025/09/decentralized-identity-hardware-wallet-cryptographic-primitive.jpeg)

Ethereum's daily active addresses jumped over 21% in a single day, indicating a significant increase in network usage and user participation.

- 
### [US Enacts GENIUS Act Establishing Federal Stablecoin Regulation](https://incrypthos.com/regulation/us-enacts-genius-act-establishing-federal-stablecoin-regulation/)
![A stark, digital landscape features massive, translucent sapphire-blue forms, partially blanketed by pristine white snow, evoking an immutable ledger's core. These formations, resembling raw data architecture, are flanked by jagged, snow-dusted network nodes, suggesting robust decentralized network infrastructure. A central snow-covered cube, a symbolic genesis block or token, rests on a smaller mound, hinting at foundational digital assets. The scene reflects in calm, icy waters, emphasizing transparency and cold storage solutions within the blockchain environment.](https://incrypthos.com/wp-content/uploads/2025/09/immutable-ledger-architecture-cold-storage-genesis-block-representation.jpeg)

The GENIUS Act mandates comprehensive federal oversight for payment stablecoins, requiring robust reserve backing and clear redemption protocols to stabilize digital asset markets and enhance consumer protection.

- 
### [UK FCA Proposes Tailored Rules for Crypto Firms](https://incrypthos.com/regulation/uk-fca-proposes-tailored-rules-for-crypto-firms/)
![A white sphere, resembling a moon, is centered within a textured blue geometric ring partially covered in frosty white deposits. This digital asset is integrated into a complex, silver-grey modular infrastructure, accented with glowing blue lights, suggesting a decentralized network operating a consensus mechanism. The system's cold storage features and intricate protocol architecture hint at immutable ledger data processing and robust blockchain security. The geometric design implies sophisticated smart contract execution and tokenomics within a Layer 2 solution for interoperability.](https://incrypthos.com/wp-content/uploads/2025/09/digital-asset-cold-storage-protocol-decentralized-network-architecture.jpeg)

The UK Financial Conduct Authority consults on adapting existing financial regulations for crypto, fostering innovation while ensuring market integrity and consumer protection.

- 
### [Bitcoin Rebounds Quickly after CPI Data, Signaling Market Resilience](https://incrypthos.com/insights/bitcoin-rebounds-quickly-after-cpi-data-signaling-market-resilience/)
![A sophisticated hardware module, metallic with deep blue accents, showcases a central, glowing blue crystalline component. This secure element, likely a cryptographic processor, is engineered for robust private key management and digital asset custody. Its intricate design suggests advanced tamper-proof mechanisms and secure enclave technology, vital for blockchain security. The device facilitates offline transaction signing and seed phrase protection, essential for non-custodial self-custody within decentralized finance DeFi ecosystems, integrating multi-signature or biometric authentication for enhanced asset protection.](https://incrypthos.com/wp-content/uploads/2025/09/secure-hardware-wallet-enclave-for-digital-asset-custody.jpeg)

Despite initial market apprehension following higher-than-expected inflation data, Bitcoin demonstrated a swift price recovery.

- 
### [Hong Kong Enacts Stablecoins Ordinance, Mandating Issuer Licensing](https://incrypthos.com/regulation/hong-kong-enacts-stablecoins-ordinance-mandating-issuer-licensing/)
![A high-fidelity rendering showcases a stylized blue and silver metallic blockchain infrastructure, resembling a secure enclave. At its core, a transparent, multifaceted crystalline structure, emblematic of a tokenized asset or a smart contract, is enveloped by effervescent bubbles. These visually represent dynamic liquidity pool activity and transaction processing within a decentralized finance DeFi protocol. The intricate metallic components suggest robust cryptographic security mechanisms and on-chain data integrity, emphasizing a sophisticated consensus mechanism.](https://incrypthos.com/wp-content/uploads/2025/09/Decentralized-Ledger-Protocol-Visualizing-Tokenized-Asset-Liquidity-Flow.jpeg)

Hong Kong's new Stablecoins Ordinance establishes a rigorous licensing framework for fiat-referenced stablecoins, reshaping digital asset market access.

- 
### [Visa Expands Stablecoin Settlement for Global Cross-Border Payments](https://incrypthos.com/adoption/visa-expands-stablecoin-settlement-for-global-cross-border-payments/)
![A large, textured sphere, resembling a celestial body, partially submerges in dark blue liquid, generating dynamic splashes. Smaller white spheres interact with the fluid. This visual metaphorically depicts a decentralized exchange's DEX liquidity pool, where tokenomics drive asset interactions. The main sphere represents a governance token or wrapped asset undergoing smart contract execution, influencing market volatility. The liquid signifies available liquidity, while smaller spheres are other digital assets or stablecoins within the DeFi ecosystem.](https://incrypthos.com/wp-content/uploads/2025/09/decentralized-liquidity-pool-dynamics-tokenomics-smart-contract-execution.jpeg)

Visa's strategic integration of stablecoins into its payment network optimizes cross-border settlements, driving operational efficiency and enabling 365-day liquidity management for enterprise partners.

- 
### [JPMorgan Advances Stablecoin and Real-World Asset Tokenization](https://incrypthos.com/adoption/jpmorgan-advances-stablecoin-and-real-world-asset-tokenization/)
![A modular, segmented white and polished silver mechanism partially submerges into a vibrant blue liquid, generating transparent bubbles and dynamic surface ripples. This represents a sophisticated blockchain architecture or decentralized autonomous organization DAO protocol integrating into a liquidity pool within the decentralized finance DeFi ecosystem. The fluid environment signifies market volatility and continuous transaction throughput, with bubbles denoting gas fees or oracle data streams. Structured components suggest intricate smart contract logic and tokenomics, emphasizing on-chain governance and digital asset flow across a distributed ledger technology DLT.](https://incrypthos.com/wp-content/uploads/2025/09/modular-blockchain-architecture-within-dynamic-digital-asset-ecosystem.jpeg)

Integrating stablecoins and tokenized assets streamlines financial operations, enhancing liquidity and capital efficiency for institutions.

- 
### [Visa Expands Stablecoin Settlement across New Blockchains and Digital Assets](https://incrypthos.com/adoption/visa-expands-stablecoin-settlement-across-new-blockchains-and-digital-assets/)
![A central, faceted blue 'X' symbol, reminiscent of the XRP digital asset, is encased within a dark, angular metallic frame. Dynamic blue energy fragments and white vapor streams signify intense computational integrity and resource allocation. This visualization depicts a sophisticated XRP Ledger operating a consensus protocol, actively processing cross-border payment transactions. The robust architecture suggests an enterprise blockchain solution, providing high on-demand liquidity within a secure decentralized finance framework. The energetic discharge reflects continuous protocol execution.](https://incrypthos.com/wp-content/uploads/2025/09/XRP-Ledger-Core-Operational-Protocol-Consensus-Engine.jpeg)

This strategic expansion of stablecoin settlement capabilities enhances operational efficiency for cross-border payments and optimizes global liquidity management for enterprises.

- 
### [JP Morgan BlackRock Tokenization Visa USDC Cross-Border Payments](https://incrypthos.com/adoption/jp-morgan-blackrock-tokenization-visa-usdc-cross-border-payments/)
![Intertwined translucent conduits, filled with vibrant blue light or fluid, suggest dynamic data or energy transfer within a complex system. White, frosted textures on the conduit surfaces evoke cryptographic security layers or cooling mechanisms for high-throughput operations. Metallic connectors anchor these structures, symbolizing robust network nodes facilitating cross-chain liquidity and decentralized asset pipelines. This visual metaphor represents the intricate flow of tokenized data streams and smart contract execution across a distributed ledger technology framework, emphasizing scalability and interoperability in Web3 infrastructure.](https://incrypthos.com/wp-content/uploads/2025/09/blockchain-interoperability-protocol-data-stream-smart-contract-execution.jpeg)

Enterprises leverage blockchain for high-value asset tokenization and efficient cross-border settlement, optimizing capital flow and operational velocity.

**Tags:** [Asset](https://incrypthos.com/news/asset/), [Assets](https://incrypthos.com/news/assets/), [Blockchain](https://incrypthos.com/news/blockchain/), [Blockchain Technology](https://incrypthos.com/news/blockchain-technology/), [Digital Asset](https://incrypthos.com/news/digital-asset/), [Digital Assets](https://incrypthos.com/news/digital-assets/), [Equity Markets](https://incrypthos.com/news/equity-markets/), [Exchange-Traded Products](https://incrypthos.com/news/exchange-traded-products/), [Financial](https://incrypthos.com/news/financial/), [Financial Innovation](https://incrypthos.com/news/financial-innovation/), [Infrastructure](https://incrypthos.com/news/infrastructure/), [Innovation](https://incrypthos.com/news/innovation/), [Investor Protection](https://incrypthos.com/news/investor-protection/), [Market](https://incrypthos.com/news/market/), [Market Infrastructure](https://incrypthos.com/news/market-infrastructure/), [Markets](https://incrypthos.com/news/markets/), [Products](https://incrypthos.com/news/products/), [Regulated](https://incrypthos.com/news/regulated/), [Regulatory Filing](https://incrypthos.com/news/regulatory-filing/), [SEC](https://incrypthos.com/news/sec/), [Securities](https://incrypthos.com/news/securities/), [Settlement](https://incrypthos.com/news/settlement/), [Tokenized Securities](https://incrypthos.com/news/tokenized-securities/), [Trading](https://incrypthos.com/news/trading/), [U.S. Securities Law](https://incrypthos.com/news/u-s-securities-law/)

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---

**Original URL:** https://incrypthos.com/regulation/nasdaq-proposes-tokenized-securities-trading-to-sec/
