US SEC Advances Proceedings to Enable Nasdaq Launch Tokenized Securities Trading

• US SEC announces bid connected a connection by Nasdaq to database and commercialized tokenized securities.

• Tokenized securities trading connected Nasdaq received enactment the Securities Industry and Financial Markets Association.

• Depository Trust Company receiving a no-action missive from the SEC signals imaginable support soon.

The US Securities and Exchange Commission (SEC) has started proceedings connected the connection by Nasdaq to motorboat trading of tokenized securities, including stocks, connected the exchange. It follows the SEC’s no-action missive to the DTCC implicit its real-world plus (RWA) tokenization services.

The US SEC seeks further comments to find whether to o.k. oregon contradict a projected regularisation alteration by Nasdaq to database and commercialized tokenized securities, according to the commission’s order.

“Institution of proceedings is due astatine this clip successful presumption of the ineligible and argumentation issues raised by the projected regularisation change,” the SEC said.

The committee has received comments successful favour of the projected regularisation alteration by Nasdaq, including by the Securities Industry and Financial Markets Association. Cboe Global Markets, Better Markets, and Ondo Finance opposed tokenized securities trading connected Nasdaq.

As CoinGape reported earlier, Nasdaq plans to connection trading of securities connected its level successful tokenized form. Notably, Galaxy Digital became the archetypal Nasdaq institution to tokenize its communal banal connected Solana.

The tokenization of securities volition amended transparency, accelerate colony times, and heighten marketplace ratio for some issuers and investors. However, the committee seeks comments and poses targeted questions concerning capitalist protection, marketplace integrity, and technological safeguards.

The bureau emphasizes that immoderate caller trading mechanisms for tokenized securities indispensable support existing regulatory standards and efficaciously mitigate risks including fraud and marketplace manipulation.

The SEC has issued a no-action missive to Depository Trust Company (DTC) of Depository Trust & Clearing Corporation (DTCC) to tokenize definite custody assets. DTCC claims it aims to span TradFi and DeFi, advancing a much resilient, inclusive and businesslike planetary fiscal system.

Notably, the securities transactions connected Nasdaq volition wide and settee successful tokenized signifier astatine the DTC aft support by the SEC. This makes the greenish airy to DTC by the committee a large measurement towards imaginable approval.

Recently, the U.S. Commodity Futures Trading Commission besides agreed to the usage of tokenized assets arsenic collateral successful the country’s derivatives markets. It announced a caller aviator programme that volition let definite integer assets arsenic collateral successful U.S. derivatives markets.