Nasdaq’s Crypto Chief Promises Quick Action on Tokenized Stocks

The Nasdaq stock exchange is prioritizing the approval process for its proposal to offer tokenized stocks. Matt Savarese, Nasdaq's head of digital assets strategy, expressed the exchange's commitment to working swiftly with the SEC to gain approval for this innovative approach to investing.

Key Takeaways

Nasdaq's crypto chief, Matt Savarese, emphasizes the urgency of SEC approval for tokenized stocks.
The proposal aims to enable the buying and selling of digital shares on the exchange.
Savarese clarifies that Nasdaq seeks to enhance, not disrupt, the traditional stock system.
The topic of tokenization is generating diverse opinions within the crypto industry.

Nasdaq crypto chief pledges to ‘move as fast as we can’ on tokenized stocks

Nasdaq Prioritizes SEC Approval for Tokenized Stocks

The Nasdaq stock exchange is making it a top priority to gain SEC approval for its proposal to introduce tokenized versions of its listed stocks. Matt Savarese, the exchange’s chief of digital assets strategy, conveyed this commitment in an interview with CNBC.

“We’ll just move as fast as we can,” Savarese stated when asked about the likelihood of SEC approval within the year. He mentioned that the exchange needs to carefully evaluate public comments and respond to any inquiries from the SEC. Savarese expressed hope that they can collaborate with the SEC quickly.

Savarese Clarifies Nasdaq's Intentions

This proposal, submitted on September 8, intends to allow investors to buy and sell stock tokens, which are digital representations of shares in publicly traded firms. When questioned about whether he anticipates other major exchanges to adopt a similar approach, Savarese stated that Nasdaq aims to promote gradual adoption rather than drastically changing the existing investment framework.

Nasdaq, SEC, United States Nasdaq’s head of digital assets, Matt Savarese, spoke to CNBC on Thursday. Source: CNBC

“We’re not looking to upend the system; we want to bring tokenization into the mainstream without disrupting the established order,” he emphasized. Savarese reiterated the commitment to a responsible, investor-led approach in alignment with SEC regulations.

In October, Robinhood CEO Vlad Tenev remarked that the process of tokenization could eventually transform the entire financial system.

Diverse Opinions on Tokenized Equities

Savarese highlighted Nasdaq’s goal to be an innovator within the financial ecosystem, referencing its pioneering transition from paper-based trading to electronic systems.

Tokenization of stocks has emerged as a hot topic in the crypto landscape this year. On September 3, Mike Novogratz, CEO of Galaxy Digital, announced that the company became the first Nasdaq-listed entity to tokenize its equity on a significant blockchain, specifically launching on the Solana network.

However, discussions surrounding tokenized equities have sparked mixed reactions within the crypto community. On October 1, Rob Hadick, a general partner at the crypto venture firm Dragonfly, suggested to Cointelegraph that while tokenized equities could significantly benefit traditional markets, their impact on the broader crypto industry might not align with subsequent expectations.

Hadick warned that if tokenized stocks leverage layer-2 networks, it could create "leakage," leading to a limited flow of value back to Ethereum or the wider crypto ecosystem.

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