Wall Street is 'ring-fencing' the blockchain tech as Nasdaq’s tokenization plan wins a major regulatory battle

The SEC's approval of Nasdaq's tokenized securities framework allows the exchange to test a system for issuing and settling certain stocks and ETFs as blockchain-based tokens, marking a significant step for integrating blockchain into U.S. equity markets, albeit on traditional finance's terms. This model focuses primarily on post-trade plumbing, enabling features like near-instant settlement and potential 24/7 trading, which benefits global investors. However, industry observers note that Nasdaq is "ring-fencing" blockchain benefits within the existing Traditional Finance (TradFi) structure, as tokenized shares still rely on brokers and settlement via the DTCC. While this is progress, the U.S. lags behind more progressive jurisdictions like Kazakhstan and Switzerland, which have adopted frameworks allowing greater flexibility, self-custody, and less reliance on legacy intermediaries.

(Source：CoinDesk)