Nasdak requires American organizers to agree to change a base that can allow exchange to include and trading symbolic versions of stocks, which represents one of the ambitious attempts so far to bring Blockchain technology in the heart of American stock markets.
In a file submitted on Monday, the second largest exchange in the world from the Securities and Exchange Committee (SEC) was requested to amend the current rules, including the definition of security, to allow the trading of distinctive shares under the same implementation requirements and documents such as traditional shares.
The proposal will continue to require a general suspension period and the SEC approval before you make any changes.
Nasdak explained in its presentation that the distinctive stocks should carry the same rights and protection as the basic securities.
The stock exchange suggested that the distinctive assets be classified clearly so that the Clearing of Companies and the Deposit Company, which deals with the settlement, can handle requests in the same way that they do with traditional stocks.
He added that priority for securities will be given the advantages of equality with traditional assets when implementing trading.
This step goes beyond technical modification. It addresses the basic questions about how to issue, define and settle the stocks.
“The solution, which was detailed in the proposal, is simple, benefits from the current infrastructure and the market structure,” Sarah Yongwood, the financial manager of the Nasdaq Stock Exchange.
If approved, the change will bring the distinctive shares directly to the American organized markets, putting Blockchain technology in the heart of stock trading instead of the ocean.
This can help answer whether the distinctive symbol becomes a standard of infrastructure in Wall Street or remains confined to specialized encryption platforms.
The Nasdak file comes as American organizers adopt a more open position towards digital assets.
The ENC Eckedns’ Council Chairman ordered the development of clear rules when digital assets are qualified as securities, while Commissioner Hyster Peres recently said that the organizer is ready to work with the distinguished symbol companies, provided that they reveal the nature of the assets that are numbered.
Distinctive securities are digital representations of shares that can be traded on Blockchain. Defenders argue that they can deepen liquidity, support the ownership of fractures, and expand access to foreign investors.
The distinctive symbol also raises the possibility of a semi -fixed settlement and trading around the clock throughout the week, compared to the traditional exchanges that are closed overnight and on holidays.
He heavy weights, including Blackrock, Franklin Templeton, and KKR, have tried symbolic parts of their money, although they are often through brokers.
Most distinguished shares have been issued so far by third parties instead of the companies themselves, creating legal and regulatory complications. In her file, Nasdak warned that the exporters were not deprived of controlling how their shares were trading.
The skeptics note that the adoption was limited yet. Jpmorgan Chase recently told customers that the bond and other assets code has not yet been acquired by attraction exceeding the cryptocurrencies. Citadel Securities also urged the organizers to move forward with caution, and warn of risks if clear rules are not determined.
Despite these concerns, Nasdak executive officials say they see an opportunity to “fill the gap between digital origins and traditional worlds of actions.” president Tal Cohen said that the challenge is to ensure the development of the distinctive symbol while protecting investors in its essence.
The proposal comes amid the growing global demand for distinctive realistic assets, as external platforms already offer symbolic versions of American stocks and boxes circulating on the stock exchange for investors abroad.
Approval of the SEC will determine the first main step towards merge the same technology directly into the American market.
The World Stock Exchange Federation (WFE), which represents the main exchanges around the world, urged organizers to tighten overseeing the distinctive shares amid fears of protecting investors and market safety.
In a letter to monitoring motivations including the Supreme Education Council, the European Securities and Markets Authority (ESMA), and the IOSCO team, WFE warned that the Blockchain -based “simulation” shares without granting the rights of shareholders or traditional prize.
The group called for the application of securities laws to symbolic assets and for clearer frameworks on ownership and custody.
Distinctive stocks, which represent the company’s shares through Blockchain, rapidly this year.
According to RWA.XYZ, the market value of the distinctive stocks increased to $ 465 million, as monthly transportation volumes increased by more than 280 % to 287 million dollars. Research from Coingecko shows that the sector has expanded nearly 300 % since the beginning of 2024.
Pits such as Robinhood, Kaken and Coinbase tested new products associated with distinctive securities. In July, RobinHood shares increased by 26 % after launching the distinctive shares and expanding the encryption infrastructure.
Meanwhile, Oondo Finance Ondo Global Markets launched last week, allowing access to more than 100 unique American stocks and investment funds for international investors.
SBI Holdings and Japan’s Japan Group also announced plans to build a trading platform for the symbolic and assets chain in the real world, and targeting what they can become a market worth $ 18.9 trillion by 2033.
While defenders highlight benefits such as trading around the clock throughout the week and low costs, the organizers warn of legal and operational risks.
“Distinguished Securities are still securities.”
Read the original story Nasdaq seeks SEC Green Light to launch the Distinguished stock market – trillion coming to Crypto? Written by Hassan Shito at Cryptonews.com
