September 9, 2025 | New York — The World Blockchain Association (WBA) reports that Nasdaq has formally submitted a landmark proposal to the U.S. Securities and Exchange Commission (SEC), aiming to enable the trading and settlement of tokenized equity securities and exchange-traded products (ETPs). If approved, stocks of corporate giants such as Apple and Microsoft could soon be traded not only in their traditional digital form but also as blockchain-based tokens.
This development underscores the growing convergence between traditional finance (TradFi) and the blockchain economy, bringing together the efficiency of distributed ledger technology with the stability of established capital markets. Industry leaders see this as a significant turning point that may accelerate adoption of Cryptocurrency, Bitcoin, Ethereum, Stablecoins, DeFi, NFTs, DAOs, and broader Web3 infrastructure across regulated markets.
Nasdaq’s Strategic Vision: Tokenization Without Disruption
Chuck Mack, Senior Vice President for North American Markets at Nasdaq, emphasized in an exclusive discussion that the proposal does not aim to dismantle the current financial system. Instead, it seeks to introduce tokenization as a complementary option:
“We are not here to replace the existing framework,” Mack explained. “We are providing investors with a more efficient, transparent technological pathway. Tokenized securities remain the same assets, only expressed through blockchain.”
Under Nasdaq’s model, investors will be able to choose whether to settle transactions in the traditional digital format or in a tokenized form recorded on a blockchain ledger. Both representations would share the same CUSIP identifiers, confer identical shareholder rights, and be cleared through the Depository Trust Company (DTC).
The World Blockchain Association points out that this dual-structure approach is designed to minimize market disruption while still embracing blockchain’s transformative potential.
What Exactly Are Tokenized Securities?
To clarify, tokenization involves representing an existing financial asset on a blockchain. While cryptocurrencies such as Bitcoin and Ethereum popularized the concept of digital tokens, tokenization expands this logic to cover equities, bonds, or even real-world assets.
- Securities are financial instruments like stocks or bonds that embody ownership or debt claims.
- Tokens are blockchain-based records that represent rights or assets.
When combined, tokenized securities merge the legitimacy of regulated finance with the programmability and transparency of distributed ledger technology.
According to the World Blockchain Association, tokenization aligns with broader trends in Web3 and DeFi, where assets are increasingly fractionalized, interoperable, and globally accessible. This opens the door for NFTs representing equity stakes, DAO-governed investment vehicles, and tokenized stablecoin-based settlements within mainstream financial infrastructure.
Implications for Investors
Nasdaq’s proposal ensures that retail and institutional investors alike will not need to adapt to an entirely new system. Orders will still be submitted through familiar channels, executed under existing SEC rules, and safeguarded by the same investor protection measures.
The novelty lies in settlement: if an investor opts for the tokenized form, DTC will process and record ownership on a blockchain. Importantly, both forms of the security remain identical in value, liquidity, and regulatory standing.
The World Blockchain Association reports that this model could significantly reduce settlement times, enhance auditability, and streamline processes across the lifecycle of a trade. By embedding tokenization within regulated structures, Nasdaq is attempting to avoid the pitfalls of fragmented blockchain markets where liquidity can be diluted across competing ledgers.
Why Nasdaq Is Embracing Tokenization Now
There are several drivers behind Nasdaq’s push:
- Market Demand: Global investors and issuers are increasingly asking for blockchain-enabled financial products.
- Efficiency Gains: Tokenization promises faster settlements, more robust audit trails, and potentially lower transaction costs.
- Future Applications: Once assets exist on-chain, they can interact with Web3 ecosystems—from collateralizing in DeFi lending platforms to integrating with NFT-based identity systems or being governed by DAOs.
- Investor Choice: Nasdaq wants to empower investors to decide whether to engage in tokenized or traditional markets.
The World Blockchain Association points out that Nasdaq’s balanced approach seeks to ensure governance, resilience, and investor protection are built into blockchain adoption from the outset.
Guardrails: Protecting Investors in a Tokenized Market
Nasdaq has emphasized that introducing tokenized securities does not mean relaxing oversight. On the contrary, the proposal explicitly maintains investor protections under existing U.S. securities laws, including:
- Transparency and disclosure requirements
- Price discovery mechanisms
- Fair and orderly trading standards
- Safeguards for shareholder rights
By embedding tokenization into current structures, Nasdaq aims to prevent risks such as liquidity fragmentation, market manipulation, or inconsistencies across competing blockchains.
The World Blockchain Association highlights that this focus on market integrity aligns with its own mission: ensuring blockchain innovation scales responsibly under sound governance principles.
Broader Industry and Global Impact
From a global perspective, Nasdaq’s tokenization proposal sends a strong signal to regulators, technology providers, and market participants worldwide. It may accelerate international harmonization of blockchain standards, particularly in areas like:
- Cross-border settlements using tokenized assets
- Integration of stablecoins for real-time liquidity
- Interoperability frameworks connecting public and private blockchains
- Institutional adoption of DeFi protocols
The World Blockchain Association reports that tokenization could represent a multi-trillion-dollar opportunity, spanning everything from equities and bonds to real estate, commodities, and intellectual property.
Next Steps: SEC Review and Market Debate
Nasdaq’s proposal will undergo an SEC comment period, inviting perspectives from regulators, issuers, asset managers, fintech firms, and the blockchain community.
The World Blockchain Association notes that this dialogue is crucial: tokenization requires not just technological readiness but also collective agreement across stakeholders to ensure security, liquidity, and scalability.
In the meantime, Nasdaq will continue working closely with clients and industry participants to refine its model, balancing innovation with stability.
Conclusion: A Pivotal Moment for Web3 and Capital Markets
For decades, Nasdaq has symbolized innovation in global finance. By proposing tokenized securities, it is now extending that tradition into the Web3 era, where Cryptocurrency, Bitcoin, Ethereum, DeFi, NFTs, DAOs, Stablecoins, and Tokenization converge with regulated capital markets.
The World Blockchain Association reports that if implemented, Nasdaq’s model could mark a turning point in how value is represented, traded, and settled globally. It is not merely an upgrade to financial plumbing—it is a step toward an inclusive, programmable, and borderless financial future.
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.
Website: WorldBlockchainAssociation.org
Email: TheWorldBlockchainAssociation@gmail.com
