Nasdaq, the world’s second-largest inventory trade by market capitalization, is in search of regulatory approval from the US securities regulator to record tokenized shares.
Nasdaq filed a request Monday with the US Securities and Change Fee (SEC) asking for a rule change that might permit the corporate to record tokenized shares.
The trade operator particularly requested to amend sure guidelines, together with the definition of a safety, to commerce tokenized shares beneath the identical execution and documentation guidelines as conventional securities, supplied the tokenized variations are deemed equal.
In keeping with a report by Bloomberg, Nasdaq’s request with the SEC would transcend a technical rule change because it pertains to the foundations of how shares are issued and settled.
Tokenized belongings must be clearly labeled
One of many modifications sought by Nasdaq with the SEC is that tokenized belongings must be clearly labeled to make sure that all members, together with these liable for clearing and settlement, just like the Depository Belief Firm, correctly course of these trades.
Moreover, Nasdaq additionally mentioned that tokenized belongings would have the identical precedence through which the trade executes that order because it does with conventional shares.
If authorized, US-regulated exchanges, together with Nasdaq, could be licensed to record tokenized shares on their platforms, which might enhance liquidity for blockchain-based variations of conventional securities.
This can be a growing story, and additional data shall be added because it turns into accessible.
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