TL;DR
- Nasdaq has received SEC approval to establish a blockchain-based structure for stock trading
- The model preserves existing intermediaries and market structure, according to industry insiders
- Traditional finance appears to be taking control of crypto infrastructure – on its own terms
- Tokenized stocks are growing globally, but regulatory frameworks are still immature
Nasdaq Gets SEC Approval – But on Wall Street's Terms
Nasdaq has secured approval from the U.S. Securities and Exchange Commission (SEC) to utilize blockchain technology for stock trading. The news marks a potential turning point for financial markets, but reactions from the industry are far from uniformly positive.
According to CoinDesk, the structure approved by the SEC allows the benefits of blockchain to be leveraged in the stock market – but without the disappearance of established intermediaries. Brokers, clearinghouses, and asset managers appear to retain their roles, which sparks debate about what the approval actually means in practice.
The blockchain is coming in through the back door – but it's Wall Street that's unlocking it and deciding who gets in.
The Technology is Cryptographic, Power Remains Centralized
One of the most cited benefits of blockchain in financial markets is the possibility of faster settlements – theoretically down to immediate settlement (T+0), compared to today's standard of T+1 or T+2. Additionally, the technology offers the potential for 24/7 trading, lower transaction costs, and a higher degree of transparency.
However, according to individuals familiar with Nasdaq's approved structure, who spoke to CoinDesk, it is precisely these opportunities that are not necessarily fully realized. The infrastructure is blockchain-based, but the control structure remains the same as before.
SEC Has Been Consistent: Tokenization Does Not Change Legal Status
The SEC has repeatedly stated that blockchain technology does not alter the legal status of a security. The regulator has clarified that if an instrument is a security under U.S. law, it is regulated as a security – regardless of whether it is recorded on a blockchain or not.
This position, in principle, makes it easier for players like Nasdaq to operate within known regulatory frameworks, but it also limits the ability to fundamentally challenge existing structures.
Decentralized Alternatives Emerge – But Struggle with Regulation
Parallel to Wall Street's entry, a number of decentralized projects for tokenizing stocks and other securities are developing. These projects offer fractional ownership, lower investment thresholds, and 24/7 trading without traditional intermediaries.
The challenge is that global regulatory frameworks largely attempt to force tokenized securities into existing legislation, rather than creating new categories. This gives players like Nasdaq – with established relationships with regulatory authorities – a structural advantage over newer, decentralized competitors.
Javier González Cruz, Chief Business Officer at Allfunds Blockchain, has warned that technology alone does not solve fundamental problems: Tokenization does not fix a bad product – if it is flawed from the outset, a tokenized version will be equally flawed.
What Does This Mean for the Crypto Market?
Nasdaq's breakthrough can be interpreted in two ways. Optimists will point out that institutional adoption of blockchain technology validates the technology and can attract more capital and trust to the sector as a whole.
Skeptics, on the other hand, will argue that this form of adoption actually undermines the core principles of decentralized finance: openness, accessibility, and the removal of intermediaries. When the same actors who control traditional finance also control the blockchain-based infrastructure, the question is whether the benefits of the technology actually reach ordinary investors.
With the Fear & Greed Index at 11 out of 100 and Bitcoin priced around $69,965 at the time of publication, this is happening in a market characterized by significant risk aversion. Nevertheless, Nasdaq's approval signals that regulatory maturity for blockchain-based financial products is beginning to take shape – even if the form is currently dictated by established financial players.
