Tokenized Stocks: Nasdaq and LSEG Accelerate Blockchain Adoption

Key Takeaways

• Global exchanges are in a competition to create tokenized asset platforms.
• Nasdaq is ready to launch tokenized stocks pending SEC approval.
• LSEG has committed £100 million to building out blockchain infrastructure.

Nasdaq Eyes Tokenized Stock Listings

Nasdaq is actively pursuing the listing of tokenized securities, having submitted a proposal to the SEC. Matt Savarese, Nasdaq's head of digital assets, highlighted the potential for expanding choice for both companies and investors. The exchange envisions seamless integration between on-chain and off-chain shares, ensuring equal rights for all shareholders regardless of the underlying technology.

Nasdaq is prepared to move swiftly upon SEC approval, partnering with firms like Securitize and Superstate to handle the technical aspects of tokenization.

LSEG Invests Big in Blockchain Infrastructure

The London Stock Exchange Group (LSEG) is taking a different approach, focusing on building the core infrastructure for tokenization. Their "Digital Markets Infrastructure" (DMI), developed in collaboration with Microsoft, supports the entire asset lifecycle, from issuance to settlement.

LSEG has allocated approximately £100 million to further develop and expand its DMI platform, initially targeting private funds with plans to extend to broader markets. While not immediately focused on listing tokenized shares, LSEG remains open to client demand in this area.

The Future is On-Chain?

Both Nasdaq and LSEG are making significant bets on the future of finance being on-chain. Their investments and strategic initiatives underscore the growing importance of blockchain and tokenization in the financial world.