US Stock Market: SEC greenlights Nasdaq’s tokenized trading push, bringing blockchain to Wall Street

While the immediate impact on Indian banking is indirect, the global push for tokenization could influence future regulatory frameworks and technology adoption within Indian financial institutions. This could lead to increased demand for blockchain-related services from Indian IT companies.

• •The U.S. SEC has approved Nasdaq’s proposal to allow select stocks to be traded as tokenized securities.
• •Investors can trade these stocks either as regular shares or digital tokens.
• •Settlement will still happen through existing systems like the Depository Trust Company (DTC).
• •The move reflects growing interest in tokenization and efforts to modernize market infrastructure using blockchain technology.
• •Risk flag: Regulatory hurdles in India for similar tokenization initiatives.