The SEC approved Nasdaq's pilot proposal for trading tokenized versions of stocks alongside traditional securities on March 18. Nasdaq, in collaboration with Kraken, aims to allow eligible participants to trade tokenized stocks of firms listed in the Russell 1000 Index. The tokenized stocks will trade on the same order book, at the same price, and hold the same rights as their traditional counterparts.
Concerns about market surveillance and price divergence were addressed through amendments. This move follows Nasdaq's partnership with Kraken, allowing clients to convert securities to tokenized forms for blockchain use and enabling public firms to issue their own tokenized shares.
The New York Stock Exchange, owned by Intercontinental Exchange, also plans to explore tokenization, investing in OKX to launch tokenized stocks.