Nasdaq Files for SEC Approval to Trade Tokenized Stocks
Nasdaq, the world’s second-largest stock exchange by market capitalization, has formally requested a rule change from the U.S. Securities and Exchange Commission (SEC) to enable the listing and trading of tokenized stocks. The filing, submitted Monday, proposes amendments to existing regulations, including redefining what constitutes a security to encompass tokenized versions traded under the same execution and documentation standards as traditional securities.
This initiative is more than a technical adjustment; according to Bloomberg, it challenges foundational aspects of stock issuance and settlement processes. Nasdaq’s proposal emphasizes the need for clear labeling of tokenized assets to ensure accurate processing by all parties involved in clearing and settlement, such as the Depository Trust Company.
In Nasdaq’s own words, a security may be traded either in a traditional digital form without blockchain technology or as a tokenized digital representation utilizing blockchain.
Ethereum Stablecoin Supply Surges to Record Levels
Ethereum saw a substantial increase in stablecoin issuance last week, adding approximately $5 billion to its supply and pushing the total to an all-time high. Data from Token Terminal indicates that the stablecoin supply on Ethereum has more than doubled since January 2024, now standing at $165 billion.
Alternative data from RWA.xyz reports a slightly lower figure of $158.5 billion but confirms Ethereum’s dominant 57% market share in the stablecoin ecosystem. This far exceeds its nearest competitors, with Tron holding 27% and Solana under 4%.
El Salvador Marks Four Years Since Bitcoin Adoption
El Salvador’s Bitcoin Office commemorated the fourth anniversary of the country’s historic decision to adopt Bitcoin as legal tender in September 2021. The agency highlighted El Salvador’s pioneering establishment of a Bitcoin strategic reserve, which currently holds over 6,313 BTC, valued at more than $702 million.
The Bitcoin Office also noted ongoing initiatives in Bitcoin and artificial intelligence education aimed at public engagement. However, despite its early leadership in national cryptocurrency adoption, El Salvador has since repealed its Bitcoin legal tender law and reduced direct government involvement in the Bitcoin sector. This shift has raised questions about the long-term viability and success of the country’s Bitcoin experiment.
FinOracleAI — Market View
Nasdaq’s request to the SEC signals a significant step toward integrating blockchain technology with traditional financial markets, potentially enhancing liquidity and accessibility for tokenized stocks. However, regulatory approval remains uncertain, and the SEC’s stance on digital asset securities is a critical factor to monitor. Ethereum’s substantial growth in stablecoin supply underscores its dominance but also highlights ongoing risks related to stablecoin regulation and market stability.
El Salvador’s evolving Bitcoin policy illustrates the challenges governments face in balancing innovation with economic and regulatory considerations. Market participants should watch for further regulatory developments and adoption trends in tokenized assets and stablecoins.
Impact: Positive
