TradFi is competing to enhance the market through blockchain technology

Nasdaq has filed an application with the U.S. Securities and Exchange Commission (SEC) to allow tokenization of stock securities and exchange-traded products (ETPs) to enable blockchain-based clearing and settlement through custodial trusts (DTCs). The exchange stressed that tokenized stocks will retain the same value and rights as traditional stocks, aiming to improve market efficiency while maintaining market stability. The move is consistent with Fidelity’s recent move to launch the tokenized Treasury fund FDIT on Ethereum, with BlackRock and Franklin Templeton taking similar moves. Industry leaders believe that these developments are key steps in integrating traditional finance and on-chain finance, and are expected to reshape market infrastructure and expand investor access.