Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Nasdaq Seeks SEC Approval for Tokenized Stock Trading
Tokenization | Sep 9, 2025
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Nasdaq Files With SEC to Tokenize All Stocks and ETFs
On September 8, 2025, Nasdaq announced in a Newsroom Q&A with Chuck Mack that it filed with the U.S. Securities and Exchange Commission (SEC) to allow every listed stock and exchange-traded fund on its markets to settle in tokenized form. The news is significant and was also confirmed by Reuters and if approved would be the first time a U.S. national exchange was keen to integrate blockchain settlement into the regulated equity system. If approved, the change would affect securities representing $61.6 trillion in U.S. market capitalization as of Q2 2025.
Nasdaq Tokenization Proposal Explained
Under the 19b-4 filing to the SEC, Nasdaq proposes that each stock and ETF maintain the same CUSIP (unique 9 digit alphanumeric identifier assigned to financial instruments in the States and Canada, such as stocks, bonds, ETFs) whether traded in traditional or tokenized form. At order entry, brokers could flag trades for tokenized settlement. Execution would take place on the same order book, under the same rules, with identical rights and benefits. After execution, the Depository Trust Company (DTC) would convert the security into a blockchain token and record ownership.
See: US Puts Economic GDP Data On Nine Blockchains
Chuck Mack, Nasdaq’s Senior Vice President of North American Markets, explained the approach and stressed that from an investor’s perspective, nothing changes in how trades are placed or executed. Only the method of settlement shifts to a tokenized form:
“Our goal is to integrate digital assets into Nasdaq’s current infrastructure and systems, which will advance financial innovation while maintaining stability, fairness, and investor protection. If investors and market participants express demand for a particular approach, and we can implement it in a way that preserves market integrity, then we want to give them that choice.”
Nasdaq has indicated the first token-settled trades could occur by Q3 2026, provided that DTC’s new systems are ready. This would embed blockchain settlement directly into the most liquid equity market in the world, where average daily trading volume reached 18.4 billion shares in Q2 2025.
The filing follows the U.S. move to T+1 settlement in May 2024. Tokenization builds on that progress by layering blockchain into existing systems rather than replacing them. SEC Commissioner Hester Peirce has made clear that tokenized securities must still comply with securities laws. One way to look at tokenization is that it's not a regulatory shortcut but rather a modernization of existing infrastucture.
Impact on Canada’s Fintech and Capital Markets
For the U.S., the importance lies in scale and precedent. With more than 5,400 listed companies, Nasdaq’s proposal would normalize blockchain-based settlement within the core market system. Tokenization could deliver operational savings, stronger audit trails, and new forms of fractional participation, all without fragmenting liquidity.
See: Europe’s Fintech Reset at Point Zero Forum
For Canada, Nasdaq's interest echoes the Ontario Securities Commission’s exploration of tokenized long term funds, aimed at improving investor access to complex assets. If Nasdaq’s model is approved, Canadian fintechs could explore cross-border tokenized products, while regulators will need to address custody, wallet security, and investor protections to keep pace with these developments.
Outlook
Next steps is for the SEC to open the filing for public comment. If approved, tokenized settlement could begin by late 2026. For NCFAs community, this is a watershed moment as tokenization moves from pilot projects and into mainstream market regulation. The implications are significant and real with efficiency gains, lower costs, competitive pressure on other exchanges, and new opportunities for cross-border fintech innovation.
For Canada's fintech and digital asset ecosystem, aligning with these changes will be critical to remain competitive in the next phase of global capital markets.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create aa vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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