Nasdaq Commits to Rapid Advancement for SEC Endorsement of Tokenized Equities

Nasdaq’s head of digital assets, Matt Savarese, revealed that the exchange has prioritized its tokenized-stock proposal and will “move as fast as we can” to obtain approval from the SEC.

This proposal aims to facilitate the trading of on-chain “stock tokens,” which are digital representations of publicly traded shares, in accordance with existing national market system regulations.

In a CNBC interview, Savarese highlighted that Nasdaq is not attempting to disrupt the current system but rather seeks to responsibly integrate tokenization into the mainstream under SEC supervision.

“We’re not creating a new exotic instrument. The stock is the stock,” he stated, emphasizing that investors would maintain full rights and ownership as shareholders.

The exchange submitted its rule change application in September, aiming to allow listed equities and exchange-traded products to be traded in tokenized formats while ensuring the same investor protections and execution standards as conventional securities.

Nasdaq Positions Tokenization as an Evolution, Not a Revolution

The exchange’s strategy focuses on preserving the existing market structure while introducing blockchain-based settlement options.

“The rules have existed for decades, and we don’t want to just completely rip out and upend the entire process,” Savarese explained, indicating that trades would continue to be processed through Nasdaq’s order book under SEC regulations and national market system oversight.

According to the proposal, tokenized shares would possess the same rights as their underlying securities, including voting rights and dividend entitlements.

“It’s fully fungible between the token and its traditional form,” he noted, clarifying that clearing firms and the Depository Trust Company would handle tokenized orders alongside traditional stocks using the same ticker symbols and CUSIP identifiers.

The executive emphasized that Nasdaq sees itself as “the original innovator” in the evolution of market infrastructure, likening tokenization to the exchange’s previous transition from paper-based to electronic trading.

“It’s evolutionary. It’s not really revolutionary,” he stated, characterizing the initiative as a gradual advancement of the ecosystem while ensuring that investor-first principles remain central.

SEC is developing a plan to enable stocks to trade like crypto on a blockchain, backed by Nasdaq, despite resistance from Wall Street incumbents.#Stock #Crypto #SEChttps://t.co/A09i0i1JCi

— Cryptonews.com (@cryptonews) September 30, 2025

Post-Trade Efficiency and Collateral Mobility Drive Immediate Advantages

Savarese outlined a phased timeline for the benefits of tokenization, with initial advantages centered on improvements in back-end processing.

Tokenized settlement would yield process efficiencies right away, although the exchange intends to ensure seamless integration with existing member firm systems before pursuing quicker settlement times.

In addition to settlement, improved collateral mobility has emerged as a significant medium-term benefit.

“Being able to take that equity, put it into a collateral pool, allow folks to be able to move that asset instantaneously can help along the lines of making sure that you have capital efficiency,” Savarese remarked, noting this would eliminate the necessity for overcollateralizing positions.

Long-term applications could extend to corporate actions, proxy voting, and programmable smart contract capabilities.

“You start to get the programmable nature of what blockchain is and smart contracts are intended for,” he elaborated.

Nasdaq’s acquisition of Calypso through its Adenza deal equips the exchange with what Savarese referred to as “the gold standard” in collateral management software, now integrated with blockchain technology to facilitate tokenized asset movement.

Regulatory Path Forward Remains a Key Focus

The exchange has entered the public comment period following its September filing, with responses due by mid-October.

“We’ll move as fast as we can with the SEC and make sure that we try to push this through,” Savarese stated, expressing confidence that tokenization is a priority issue for the current administration.

While he refrained from providing specific timelines for approval due to uncertainties, including recent government disruptions, the executive underscored Nasdaq’s collaborative approach.

“We’re not looking at kind of upending the system. We want everyone to come along with us for that ride and bring tokenization more into the mainstream, but we want to do it in that responsible investor-led way,” he remarked.

SEC Chair Paul Atkins has instructed the agency to establish clear rules regarding digital asset classification.

Simultaneously, Commissioner Hester Peirce recently reiterated the regulator’s readiness to collaborate with tokenization firms, provided they ensure full transparency about asset characteristics.

Nasdaq already filed SR-NASDAQ-2025-072 to list tokenized equities/ETPs, and the SEC’s public-comment window closes Oct 14. Commissioner Hester Peirce also said today the agency is willing to work with tokenization efforts—signaling tangible follow-through, not just chatter.

— Briefing Block (@briefing_block_) September 30, 2025

Nasdaq’s filing coincides with a surge in global tokenized stock markets, which have surpassed $465 million in market value, with monthly transfer volumes increasing by over 280% according to RWA.xyz data.

Source: RWA[dot]xyz

Despite this momentum, there is ongoing resistance from traditional financial institutions.

The World Federation of Exchanges has urged regulators to enhance oversight of tokenized equities, cautioning that blockchain-based products may “mimic” traditional stocks without providing the shareholder rights or market protections that define regulated securities trading.

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