The Nasdaq proposal to tokenize stocks is under regulatory review and exposes a historical tension between traditional markets and on-chain infrastructure.
Nasdaq put forward an idea that until recently seemed exclusive to the crypto ecosystem: tokenized stocks operating under blockchain infrastructure. The review by the SEC is not a mere technical procedure; it is a turning point that could redefine how securities are issued, settled, and custodied within the United States. This is not about 'crypto wanting to enter Wall Street,' but rather Wall Street adopting crypto mechanisms to survive its own inefficiencies.
📌 What does the Nasdaq proposal really imply
Tokenization of traditional stocks while maintaining the current regulatory framework.
Almost instant settlement compared to the current T+1 / T+2 model.
Reduction of operational costs, intermediaries, and post-trade friction.
Greater traceability and control over ownership and transfers.
This is not free DeFi, but it is blockchain applied to regulated markets.
⚖️ SEC: the regulator in 'damage control' mode
The SEC review reveals two key tensions:
Protecting the traditional financial system without stifling innovation.
Preventing tokenization from escaping the classic regulatory perimeter.
The dilemma is clear: if the SEC blocks, it pushes innovation outside the U.S.; if it approves, it legitimizes crypto infrastructure as the basis of the capital market.
📊 Direct impact on the stock market
Acceleration of the capital cycle.
Deep changes in custodians, clearing houses, and brokers.
Increased competition between traditional and on-chain infrastructures.
For markets, this is not just efficiency: it is a structural redesign of the financial plumbing.
🌐 Why this matters for crypto (even if you're not a stock trader)
Validates blockchain as the foundational layer of regulated markets.
Bringing institutional capital closer to tokenized infrastructures.
Reduces the narrative of 'crypto as a parallel system' and integrates it into the financial core.
The boundary between TradFi and crypto is no longer ideological: it is technical.
Conclusion
The Nasdaq proposal does not mark the end of the traditional financial system, but it does signify the beginning of its internal transformation. If the SEC moves forward, the United States could lead regulated tokenization; if it holds back, other markets will take the lead. In both cases, the message is unequivocal: tokenization has ceased to be a crypto promise and has become a systemic necessity.
Will regulated tokenization strengthen the current financial system or accelerate its replacement with on-chain infrastructures?
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⚠️ Disclaimer: This content is for educational and informational purposes only. It does not constitute financial advice. Do your own research (DYOR).