Nasdaq moving to tokenized stocks, good or bad for Bitcoin?

[notocactus]

I don't see any harm in Bitcoin here; it's totally different from Bitcoin. They are just making it digital / tokenized.  So for me, it's more likely to become modern, especially now that we are in the era of the internet, cashless, and everything is digital.
I also don't think they will use blockchain for these to be tokenized?

Bitcoin is not a first cryptocurrency but it is a first blockchain project that has succeded and changed their world perspective on blockchain technology. Bitcoin motivates more people to join blockchain industry and triggers a blockchain era since 2009.

BlackRock and the other companies from Wall Street have been realized potentiality of blockchain and with better legal status for this industry, they have been boosting their engagement depth in this industry. They don't compete directly with Bitcoin but they have been simply doing their own jobs for adaptation to a blockchainized-world that surely has Bitcoin as an important piece.

[shinratensei_]

At the same time, it kinda looks like a way to push Bitcoin aside. They’ll happily clap for tokenized Apple shares since it’s under their control, but when it comes to BTC they’ll still slap the “too risky” label on it. And if Wall Street achieves instant settlement through tokenization, one of Bitcoin’s selling points gets weaker. BTC will have to stand on its other strengths like censorship resistance and being outside their system, not just on efficiency.

So question is: does this move bring Bitcoin closer to mainstream, or is it a way to push Bitcoin aside while they keep control?

I'm sure in the long run it will bring bitcoin closer to the mainstream. I think their reason for tokenized stock is that they want to expose stocks to an even more international market. We all know crypto got massive trillion dollar market cap, then there are some people out there who want to invest into US stock but can't and aren't brave enough to invest in crypto.
I think those are demographic they are trying to reach. I honestly welcomed this idea. Tokenized stock will be seamless and can bring capital from the traditional market to crypto and to bitcoin.

[fuguebtc]

This shows how Wallstreet is not feeling confidence anymre by seeing crypto slowly eating their lunch. So Nasdaq is looking for approval for the tokenization, then wanna try to drain back the liquidity that went to the crypto. They wanna shift liquidity back to their way. I'm not a fan from this idea, sorry.

This idea sounds bad to me and not even related to the Bitcoin at all. All they want is getting back their liquidity, that's it.

The US financial market capitalization is nearly 50 trillion, while the crypto market capitalization is just 4 trillion with liquidity of less than 100 billion per day. Do you think they are afraid of crypto? No, they are not afraid, simply because they want to expand further and take over everything, and they have enough power to do so. Because after all, profit is what investors are after, not privacy and freedom.

On the contrary, I am very much in favor of this idea because it will give us more options in investing. Especially the US market, which is considered the most profitable market. But due to technological and regulatory barriers, many people cannot access it. But with tokenization, things will become easier and open up more opportunities for everyone.

[X-ray]

This gonna be the proper implementation of RWA that we're looking for.

A bridge between the stock market to bitcoin. Imagine if AAPL and NVDA holder rotate their profit to bitcoin, it's gonna be massive since where else they gonna rotate their profit.

Is this a sign that bitcoin's price and index stock price gonna move in unison?

No wonder there are some exchanges introducing tokenized stock, I bet they've got some information about this and want to get a head start.

I'm curious how they gonna tokenize the stocks though? is it through exchange or RWA projects?

[Alpen]

The tokenization of stocks doesn't really affect the Bitcoin ecosystem since companies are issuing RWAs (Real World Assets) on other blockchains. If they were to use a protocol like Ordinals or something similar, then the Bitcoin blockchain would gain liquidity, and miners would earn more from increased fees. But that's not going to happen. The Bitcoin network is too slow, and tokenizing stocks would seriously overload it.

[BitGoba]

Nasdaq is pushing to let stocks and ETFs trade in tokenized form on their main market, could be live by 2026. Basically the same rights as normal shares, just on a blockchain.

Not sure how to feel on this. On one side, Nasdaq tokenizing stocks makes blockchain look legit, and that could spill over to Bitcoin. People who used to say blockchain is only for scams might start seeing BTC as the pioneer that started it all. It could open doors for adoption since the tech itself is getting mainstream approval.

At the same time, it kinda looks like a way to push Bitcoin aside. They’ll happily clap for tokenized Apple shares since it’s under their control, but when it comes to BTC they’ll still slap the “too risky” label on it. And if Wall Street achieves instant settlement through tokenization, one of Bitcoin’s selling points gets weaker. BTC will have to stand on its other strengths like censorship resistance and being outside their system, not just on efficiency.

So question is: does this move bring Bitcoin closer to mainstream, or is it a way to push Bitcoin aside while they keep control?


Nasdaq makes push to launch trading of tokenized securities

NEW YORK, Sept 8 (Reuters) - Nasdaq (NDAQ.O), opens new tab is working with U.S. regulators to introduce trading of tokenized securities, becoming the latest major financial player on Wall Street to double down on a boom in tokenization amid an easing of crypto regulations under the Trump administration.
If approved, the move would mark the first instance of tokenized securities being allowed to trade on a major U.S. stock exchange, and also signify the most ambitious attempt yet by an exchange operator to bring blockchain-based settlement into the national market system.

Blockchain is an old technology dating back to the early 1990s and has not found significant practical use so far because it is a very inefficient and slow database. The only meaningful application is for decentralized currency Bitcoin combined with the proof-of-work mechanism. Without Bitcoin, blockchain is essentially useless.
Mainstream media, which are mostly owned by bankers and people who hold a monopoly over printing fiat currencies, have been pushing heavy propaganda for the past 15 years. They claimed that blockchain is a great invention, while Bitcoin is irrelevant. However, if you look deeper, it becomes clear that this is nonsense  blockchain is nothing without Bitcoin.

This narrative was exploited by numerous scammers who created their own ‘blockchain’ projects, claiming the technology can have various uses beyond just money  usually by launching their own tokens or shitcoins, which they sold to gullible and greedy retail investors.

You actually don’t need blockchain for tokenizing stocks and ETFs. There are more efficient and simpler systems that can provide all the necessary functionalities without the complexities that come with blockchain.

Blockchain is only truly useful for Bitcoin.

[pooya87]

At the same time, it kinda looks like a way to push Bitcoin aside.

Not really. There is not even a remote connection to bitcoin here. Not to mention that I don't see any point in doing it apart from the fact that they are using a "buzzword" (ie. Blockchain) to do something that makes no sense and has no benefits!

The shares are still issued by same centralized entities. They are regulated under the same laws and through same regulatory bodies and you can basically trade them the same as before! So the only thing "tokenizing" stocks does is add a buzzword on top to maybe attract more gullible investors to hand their money over to the oligarchs that control the US stock market...

[BlackBoss_]

Not really. There is not even a remote connection to bitcoin here. Not to mention that I don't see any point in doing it apart from the fact that they are using a "buzzword" (ie. Blockchain) to do something that makes no sense and has no benefits!

The shares are still issued by same centralized entities. They are regulated under the same laws and through same regulatory bodies and you can basically trade them the same as before! So the only thing "tokenizing" stocks does is add a buzzword on top to maybe attract more gullible investors to hand their money over to the oligarchs that control the US stock market...

Blockchain is actually a buzzword as there is blockchain this and there is blockchain that.

I don't need to say about Nasdaq or Black Rock as well as their plans for cooking something in the future, let's only review about Bitcoin and altcoins. Altcoins have blockchains but they are centralized and censorship blockchains while Bitcoin is the only decentralized blockchain. It makes Bitcoin blockchain different and has highest utitilities and value compares to thousands of altcoin blockchains and projects.

[Natalim]

At the same time, it kinda looks like a way to push Bitcoin aside.

Not really. There is not even a remote connection to bitcoin here. Not to mention that I don't see any point in doing it apart from the fact that they are using a "buzzword" (ie. Blockchain) to do something that makes no sense and has no benefits!

Yes, it’s still a centralized asset just being tokenized, but investors might find it easier since it adds convenience and accessibility. Though if we’re talking blockchain, it should really belong in crypto, this feels more like traditional markets trying to invade the space.

So the only thing "tokenizing" stocks does is add a buzzword on top to maybe attract more gullible investors to hand their money over to the oligarchs that control the US stock market...

this is what im really concerned of.

I'm curious how they gonna tokenize the stocks though? is it through exchange or RWA projects?

Most likely it will be through exchanges or RWA projects since they’re still under regulation, so it’s not gonna be free and open like crypto.
It’s basically the same stocks, only repackaged and traded in a different form.

[Alphakilo]

This NASDAQ's move to tokenize stocks may be a significant event but it will not affect Bitcoin's price, nor will it make tokenized stocks a competitor to Bitcoin.
Instead, I see it as a powerful validation of the Blockchain technology and its ever growing potential to revolutionize traditional finance.

Hopefully, with this development just as the launch of the spot ETF was, the education and onboard of a new wave of investors who may eventually yet explore Bitcoin and the broader crypto market to their advantage will come and it will be left for all to see if such an integration will make investors appreciate the unique properties of a decentralized crypto like Bitcoin or simply run back to the centralized systems of traditional finance.

[pancelot]

Just know that there is no problem. If ETFs are allowed, do not be surprised if bitcoin ETF has the highest volume and far higher than others. Stocks are not also threats. RWA assets are not also threats. Bitcoin will remain dominant in crypto while most assets will only be a minute part in the total marketcap.

I agree with @Charles-Tim. The more tokenized old assets get, the more obvious it is that Bitcoin is in a separate class. Tokenized stocks or ETFs can offer faster and more efficient settlement, but they are ultimately old assets wrapped in new tech and still beholden to centralized control.

Bitcoin's strength has never been efficiency—it's independence, autonomy, and unmanipulability. As people start to compare tokenized instruments and Bitcoin, the difference will be even more stark. Rather than replacing Bitcoin, tokenization actually heightens the difference between centralized finance and actual decentralization, thus making Bitcoin's unique contribution all the more evident.

[asriloni]

This shows how Wallstreet is not feeling confidence anymre by seeing crypto slowly eating their lunch. So Nasdaq is looking for approval for the tokenization, then wanna try to drain back the liquidity that went to the crypto. They wanna shift liquidity back to their way. I'm not a fan from this idea, sorry.

This idea sounds bad to me and not even related to the Bitcoin at all. All they want is getting back their liquidity, that's it.

I believe Nasdaq will have no problem getting their token approved.  They have their token backed by shares so it is just changing form from a traditional share to a tokenized share.  And yeah I highly agree with you.  They see how Bitcoin is getting the attention of investors and even states and countries, so they plan to at least make them look their way.

That's Nasdaq's main target. Crypto growth faster than they predicted. If they don't join in the trend, their liquidity will be slowly, but surely eating by crypto. Tokenized shares is just a way to prevent it to happen, and make their market will always sustain even after the new trend like crypto is booming.

[Ucy]

The whole thing wouldn't make much sense until you understand the uniqueness of bitcoin, which is a currency that you can truely own. The system it is based on is run by Bitcoin Community and operates automatically, such that it's difficult to violate its fundamental principles, like: not censoring acceptable/legitimate transactions, non violation of users privacy, keeping data immutable, ability to use the system with little to no permission, not trusting users or service providers not to misbehave/cheat/fail, being transparent, etc. This is is unlike centralized systems, including certain blockchains (which could be mere private chains) that allow an individual or few people/users that can't be checked and balanced by interested users, to determine how the systems operate, and could possibly censor or confiscate users tokens/assets as they wish. This is nothing new or unique as it's the normal practices on public non-blockchain centralized financial systems that are opaquely run by individuals who could do bad things with them and not get caught or punished by authorities.

Bitcoin does not allow you to do bad things with its protocol or violate its rules, as it's monitored by the community and coded to prevent that possiblity. This is why it's special.