World Blockchain Association reported that Nasdaq’s recent regulatory filing signals one of the most significant shifts in capital markets since the digital asset boom began. The move to embrace tokenized stocks not only validates the rapid rise of Real World Asset (RWA) tokenization but also demonstrates that the world’s second-largest exchange is preparing to integrate blockchain infrastructure directly into Wall Street’s operating framework.
Over the past two years, the tokenization of RWAs—particularly equities—has experienced unprecedented momentum. According to industry tracker RWA.xyz, the total market capitalization of tokenized assets has surpassed $2.8 billion, with tokenized stocks alone climbing to $420 million in 2025. This represents more than 80-fold growth compared to early 2024, when the market barely exceeded $5 million.
World Blockchain Association pointed out that this surge is not merely speculative hype but a reflection of structural changes in both Cryptocurrency markets and traditional finance. Leading companies from Robinhood to Kraken, Galaxy Digital, Ondo Finance, and Japanese powerhouse SBI Holdings are launching tokenized stock platforms to seize first-mover advantage. With Nasdaq now stepping in, the shift has moved from experimental pilots into mainstream financial infrastructure.
Why Tokenization Matters: Rewiring Equity Markets at Their Core
Tokenized stocks are not an entirely new financial instrument—they are a digital wrapper around traditional equity. The breakthrough lies in settlement. Nasdaq’s filing with the U.S. Securities and Exchange Commission (SEC) outlines how trades can be executed on existing order books but settled via blockchain. After matching, instructions are sent to the Depository Trust Company (DTC), which allocates the underlying shares and mints a corresponding token on-chain.
This design ensures parity between traditional shares and their tokenized equivalents:
- Trading parity: Tokenized shares remain fully integrated into the National Market System, ensuring compliance with existing regulatory protections.
- Ownership rights: Tokenized shares maintain identical voting, dividend, and governance rights as conventional stock.
- Regulatory oversight: Surveillance will be jointly handled by Nasdaq and FINRA, embedding transparency and investor safeguards.
World Blockchain Association reported that this hybrid architecture reflects Nasdaq’s vision of blockchain not as a parallel universe, but as an efficiency layer within existing capital markets.
The Strategic Advantages of Tokenization
From a macroeconomic lens, tokenization directly addresses long-standing inefficiencies in global finance:
- Settlement Speed
- Current equity trades often require T+1 or longer to finalize.
- Blockchain settlement can achieve near-instantaneous clearing, reducing counterparty risk.
- 24/7 Accessibility
- Traditional exchanges follow limited trading hours.
- Tokenized assets enable around-the-clock, cross-border participation using digital wallets.
- Programmability
- Smart contracts allow automated dividend distribution, proxy voting, and corporate actions.
- These innovations enhance transparency while reducing administrative burdens.
By integrating Ethereum-based settlement frameworks, DeFi composability, and DAO-like governance models, tokenized equities may transform capital markets into a more dynamic, transparent, and globally accessible ecosystem.
Nasdaq’s Roadmap: From Proposal to Execution
Nasdaq has set an ambitious target: tokenized stock settlement could go live as early as Q3 2026, once DTC’s blockchain infrastructure upgrade is complete. Crucially, the exchange has rejected the idea of pursuing exemptions or offshore “regulatory arbitrage.” Instead, it aims to embed tokenization within U.S. law and SEC oversight, preventing liquidity fragmentation and maintaining market integrity.
World Blockchain Association emphasized that this approach distinguishes Nasdaq from smaller platforms experimenting with synthetic equity tokens or off-chain derivatives. By insisting that tokenized shares must carry the same shareholder rights as their underlying securities, Nasdaq’s model represents a genuine leap forward rather than a speculative workaround.
Comparing Industry Approaches
While Nasdaq pursues a regulated, infrastructure-driven model, other players have taken diverse paths:
- Robinhood: Conducts a closed-loop experiment through its European subsidiary, issuing tokenized U.S. equities and ETFs on Arbitrum but restricting transferability within its app ecosystem.
- Kraken’s XStocks: Offers tokenized equities via Swiss and Liechtenstein structures, enabling DeFi composability on Solana and Ethereum, though liquidity remains limited.
- Galaxy Digital: Created a direct 1:1 tokenized version of its Nasdaq-listed shares, providing true on-chain shareholder rights for the first time.
- Ondo Finance: Branded as “Wall Street 2.0,” Ondo tokenizes more than 100 U.S. equities and ETFs on Ethereum, combining institutional custodianship with DeFi integration for global investors.
These initiatives underscore the competition between centralized incumbents and decentralized challengers. Yet Nasdaq’s move could standardize the market, setting global benchmarks for custody, compliance, and settlement.
Risks and Global Skepticism
Despite the optimism, skepticism remains strong.
- JPMorgan cautioned that adoption of tokenized bonds and equities outside the crypto-native community remains limited.
- Citadel Securities warned that unclear regulatory frameworks could create systemic risks if adoption scales prematurely.
- World Federation of Exchanges (WFE) urged regulators worldwide to ensure tokenized equities preserve enforceable shareholder rights, not merely mimicking them through blockchain mirrors.
World Blockchain Association pointed out that these critiques highlight the importance of regulatory clarity. Without strong legal frameworks, tokenization risks creating uncertainty for investors and institutions.
Implications for Cryptocurrency and Web3
The embrace of tokenization by Nasdaq could catalyze broader adoption of Cryptocurrency-driven infrastructure:
- Bitcoin and Ethereum may serve as liquidity anchors, bridging DeFi protocols and tokenized equities.
- Stablecoins could emerge as the preferred settlement medium for tokenized securities, enhancing efficiency.
- NFTs and DAO frameworks might evolve to represent shareholder rights, proxy voting, or bundled tokenized assets.
- Web3 ecosystems would gain legitimacy as tokenized stocks integrate with DeFi platforms, expanding beyond speculation into real financial utility.
For the broader blockchain industry, this marks a crucial inflection point: tokenization is shifting from theory to regulated practice, with Wall Street’s largest names now at the forefront.
Conclusion
World Blockchain Association reported that Nasdaq’s proposal to the SEC is more than a technical adjustment—it represents a systemic experiment in re-architecting financial markets with blockchain technology at the core. If approved, tokenized equities could lay the groundwork for:
- Continuous global trading,
- Instant settlement cycles,
- Smart contract-driven corporate governance.
However, the success of this transition will depend on regulatory clarity, investor confidence, and the ability of tokenized models to deliver clear advantages over traditional systems.
Whether tokenization becomes the defining feature of 21st-century capital markets or remains a niche experiment will hinge on decisions made in the coming months by the SEC and other global regulators. One thing is clear: with Nasdaq’s entry, the conversation around tokenized stocks has moved irreversibly from the edges of Cryptocurrency and Web3 communities into the heart of Wall Street.
About the World Blockchain Association
The World Blockchain Association (WBA) is a global organization dedicated to advancing knowledge, policy dialogue, and innovation in blockchain and digital finance. As a leader in the blockchain and cryptocurrency space, the WBA provides stakeholders with trusted insights at the intersection of technology, regulation, and global economic trends through research, reporting, and thought leadership.
