US Nasdaq Requests Approval for 'STO Trading'... Wall Street Tokenization Expansion [Crypto Briefing]

[Financial News] As US Nasdaq pushes for blockchain-based tokenized securities trading (STO), discussions on domestic STO legislation are expected to gain momentum.
According to foreign media and industry sources on the 14th, Nasdaq recently requested approval from the US Securities and Exchange Commission (SEC) to trade tokenized stocks and exchange-traded products (ETP). The key is to ensure that tokenized securities have similar legal rights to existing listed stocks, such as dividends and voting rights. If the SEC approves this proposal, investors could trade stocks and ETPs in tokenized form as early as the second half of next year.
Chuck Mack, Senior Vice President of Nasdaq North American Markets, stated through the Nasdaq Newsroom, "If the rules are changed as proposed to the SEC, member firms and investors will be able to trade tokenized stock securities and ETFs on the Nasdaq market," adding, "Tokenized securities will also be granted rights and benefits with the same identification number (CUSIP) as existing securities."
In this regard, Coinbase, the largest virtual asset exchange in the US, has also requested approval from the SEC for tokenized stock trading, and BlackRock, the world's largest asset manager, is exploring ETF tokenization. A representative from Xangle Research stated, "It is very encouraging that BlackRock, which is already actively operating Bitcoin and Ethereum ETFs, is considering on-chain (blockchain) transfer of flagship ETF products and tokenization of real-world asset (RWA) based funds," adding, "As tokenization trends spread across Wall Street, BlackRock's move to tokenize virtually all financial assets is likely to become a key catalyst for institutional capital inflow."
In this process, alliances between traditional financial institutions and virtual asset exchange companies are also being formed. Global virtual asset exchange Binance and Franklin Templeton have also formalized strategic cooperation for the development of digital asset products. They plan to launch new products based on tokenized securities and digital assets to improve payment speed, enhance collateral management efficiency, and innovate investment portfolios.
It is expected to have a significant impact on the development of the domestic token securities (STO) market as well. Our government is already pushing for the introduction of STO as a funding means for small and venture companies, so the US case is expected to accelerate domestic legislation. The industry also voices the urgency of integrating blockchain technology with existing securities trading systems and establishing a new risk management system for investor protection.
An industry insider stated, "Globally, the demand for tokenization of financial assets is increasing, and innovative attempts such as Robinhood tokenizing OpenAI shares, which is an unlisted company, are continuing," adding, "If the SEC approves Nasdaq's request, it will be evaluated as a game-changer in the development of the STO industry, as it will be the first case of trading tokenized securities on major US stock exchanges." He continued, "The expectation is also high that it will provide the advantages of blockchain, such as fast settlement, improved audit tracking, and efficient processes, while utilizing the US capital market infrastructure as it is."
elikim@fnnews.com Kim Mi-hee Reporter