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

[Natalim]

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.

[Charles-Tim]

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.

[alani123]

Tokenized securities have one main advantage.

Lack of authorization to trade and speculate on real world assets. They don't bear the main advantages of crypto which are trustlessness and immutability. They're rather trust based tokens which rely a lot on a central institution. Especially since attempts to make tokenized stocks so far were created by third parties which the stock exchanges didn't like, it was hard to maintain them.

If they're based on infrastructure by the stock exchange itself they can be trusted more. Perhaps if Nasdaq could create a portal where anyone can redeem a tokenized stock for 1:1 the price on the exchange and get USDC it would make it easy to trust this.

The advantage is that people from all over the world, even without the ability would be able to trade these tokenized stocks. Also a side-effect that's positive is that speculation could enter the DeFi era with liquidity pools, liquidity farming, loans etc. platforms provided by third parties. So there could be a second layer of speculation on stocks that's more advanced.

But would nasdaq really allow for such free (as in freedom) tokenization that anyone could trade their tokenized stocks? Could a north korean do it without being KYC'd? I doubt it. So at this point why even bother when the average investor can trade stocks on apps like Robinhood for free, especially if you'd have to be KYC'd for the tokenized stocks too.

[Free Market Capitalist]

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.

But are you sure it will be on the Bitcoin blockchain or on others, such as ETH? I think the latter is more likely. Tokenization is simply a consequence of the times we live in, where you can trade cryptocurrencies 24/7/365, but if you want to trade stocks, you can only do so five days a week normally, and at Christmas or other holidays, you may find yourself unable to trade for three or four days in a row. I don't think it will be bad for bitcoin. It will be neutral or even good.

[Natalim]

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.

But are you sure it will be on the Bitcoin blockchain or on others, such as ETH?

definitely not with bitcoin, but possible with ETH or private ledgers they may create.

I think the latter is more likely. Tokenization is simply a consequence of the times we live in, where you can trade cryptocurrencies 24/7/365, but if you want to trade stocks, you can only do so five days a week normally, and at Christmas or other holidays, you may find yourself unable to trade for three or four days in a row. I don't think it will be bad for bitcoin. It will be neutral or even good.

Neural maybe, that’s the best possibility. But honestly I doubt it, because this tokenization could compete with Bitcoin since it’s easier for investors to monitor tokens and it’s more transparent. Of course Bitcoin will still stay big in crypto, but in the NASDAQ it might be a mix, and Bitcoin’s share could get reduced or might not grow as much.

If they're based on infrastructure by the stock exchange itself they can be trusted more. Perhaps if Nasdaq could create a portal where anyone can redeem a tokenized stock for 1:1 the price on the exchange and get USDC it would make it easy to trust this.

here's the q&a on the proposed tokenized securities
https://www.nasdaq.com/newsroom/qa-nasdaqs-new-proposal-tokenized-securities

[Rustam Meraj]

Move by Nasdaq to tokenize stocks is double edged sword for Bitcoin. On one hand it is huge step that makes blockchain technology look real and trustworthy to public and to regulators. This could lead to spillover effect that makes people more comfortable with Bitcoin as first and main example of technology. On other hand it can also be seen as attempt by Wall Street to use technology for their own benefit giving them advantages of speed and efficiency while keeping everything under their control. This would force Bitcoin to rely even more on its other unique strengths such as remain decentralized and not controlled by any government or company.

[alani123]

here's the q&a on the proposed tokenized securities
https://www.nasdaq.com/newsroom/qa-nasdaqs-new-proposal-tokenized-securities

The issue I see here is that Main St. financial baron interests can be conflicting with the crypto lobby. Both are very rich now but the Main St. barons are in the game for much longer and I'd say have more power even.

Last time tokenized stocks were attempted by binance regulators striked them down with force and they were forced to abandon the endeavor. Stock markets and brokers want their monopoly on how stocks are traded. The finance industry has some of the strongest lobbies so I'd say either this can't be disruptive as Nasdaq wants it to be or if it gets popular it will be winded down due to outside pressures by politicians.

[Natalim]

here's the q&a on the proposed tokenized securities
https://www.nasdaq.com/newsroom/qa-nasdaqs-new-proposal-tokenized-securities

The issue I see here is that Main St. financial baron interests can be conflicting with the crypto lobby. Both are very rich now but the Main St. barons are in the game for much longer and I'd say have more power even.

That’s true, they’re stronger than any crypto because they’ve been in the game forever. Crypto came in and threatened their monopoly, so most likely this move is just their way of keeping their position at the top.

Last time tokenized stocks were attempted by binance regulators striked them down with force and they were forced to abandon the endeavor. Stock markets and brokers want their monopoly on how stocks are traded. The finance industry has some of the strongest lobbies so I'd say either this can't be disruptive as Nasdaq wants it to be or if it gets popular it will be winded down due to outside pressures by politicians.

They never liked Binance, and when we talk about monopoly it’s really about who has the power to regulate. That’s why it was so easy to call what Binance did “illegal,” but when Nasdaq comes in, suddenly it’s “innovation.” You can see the unfair treatment. I guess that’s just how it works, once institutions get involved with crypto or even Bitcoin, it doesn’t really feel favorable to us anymore, because Wall Street will try to control the whole thing.

[cryptoaddictchie]

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

Its probably a mix of both. Nasdaq tokenizing stocks definitely gives blockchain tech a stamp of legitimacy, which indirectly helps Bitcoin by killing the old scam only narrative. But their version of tokenization will still be centralized and fully controlled, which means theyll cheer for tokenized Apple but still call BTC too risky. What this really does is take away some of Bitcoin’s edge on speed and settlement, but at the same time it makes BTC’s real value clearer.

[Ziskinberg]

Its probably a mix of both. Nasdaq tokenizing stocks definitely gives blockchain tech a stamp of legitimacy, which indirectly helps Bitcoin by killing the old scam only narrative. But their version of tokenization will still be centralized and fully controlled, which means theyll cheer for tokenized Apple but still call BTC too risky. What this really does is take away some of Bitcoin’s edge on speed and settlement, but at the same time it makes BTC’s real value clearer.

I don’t think Bitcoin will be affected by this. Those tokenized assets are just company shares, and their value depends on how the company performs. Bitcoin is different, it’s not run by one company, it runs on the demand of the whole ecosystem. So it’s simple: if we believe demand for Bitcoin will keep rising in the future, then price will follow.

These tokenized shares are only copying Bitcoin’s system by using blockchain, but at the end of the day the people behind them are the same ones trying to monopolize the market. That’s exactly what Bitcoin was made to go against. And don’t forget, shares can be diluted or controlled, while Bitcoin has a fixed supply and no central authority, that’s the big difference.

[coolcoinz]

It's progress and I don't think it's pushing bitcoin aside in any way.

Let's say you used to have stocks and now you will own tokenized stocks where you can actually see them being moved around. It's the same stock just not with a simple promise of ownership. You're getting more transparency, more involvement in trading, possibly also more control over your stock. From the perspective of a stock trader it's just better.

Now what about bitcoiners? It gives them something more familiar to move to. As a person used to blockchain tech, you will more likely be buying traditional stocks now that they're on the blockchain.

As for bitcoin, it will still remain the payment system that it is. You can
t pay with stocks and I don't believe that tokenized stocks will ever be divisible the way bitcoin is. If a Tesla stock is now $400, you will have the same 400 in the form of a token. You won't be able to sell half a share. With bitcoin, despite it being worth over $100k, you still can use only 1% of it and keep the other 99%.

[Helena Yu]

I didn't think about Bitcoin, but I'm thinking about the stock price.

Brokers aren't open for 24 hours, if they tokenized their stocks which it can be accessed through everyone in this world for 24/7, it will conflict with their stock price.

This surely bring an adoption to Nasdaq, similar like how Bitcoin who have the ETFs version which I have never thought the adoption can be so high. Some cash flow will move to Nasdaq, but I don't think Bitcoin holders will sell some of their coins to buy tokenized Nasdaq.

[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.

[cryptoaddictchie]

These tokenized shares are only copying Bitcoin’s system by using blockchain, but at the end of the day the people behind them are the same ones trying to monopolize the market. That’s exactly what Bitcoin was made to go against. And don’t forget, shares can be diluted or controlled, while Bitcoin has a fixed supply and no central authority, that’s the big difference.

You mean riding the thread since crypto is going mainstream now as stocks got left behind. Seriously even tokenized I dont think there will be much of a change, they are doing this to expand the stock reach as crypto has too many gateway for global expansion and this is one way to spread their wings to more users even outside their jurisdiction.

[lionheart78]

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

Is this token decentralized? or centralized?  I do not think that this move is to support Bitcoin but rather to go with the trend.  Another thing is that this is not a competitor of Bitcoin since Nasdaq shares are already in the market; they are just making a token of it to go with what is trending.

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.

[Fivestar4everMVP]

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?

First of all, let me say that Bitcoin can never be pushed aside, and secondly, you made a mistake in the part of your post I bolded, where you said Nasdaq tokenizing stocks makes blockchain look legit, and I want to ask, was there or Is there any time that blockchain wasn't legit? How does Nasdaq tokenization of stocks make blockchain look legit when the blockchain was never fake in the first place...?

And away from the above, like I've said before, bitcoin can never be pushed aside but rather will gain even more adoption and more community members, bitcoin over the years have managed to build and gain alot of dedicated community members who are backing down their support for bitcoin no matter what come may, many of us through bitcoin have come to the realization that the government were manipulating us through traditional finance, they want  control over everything and if actually they are bringing stocks to the blockchain to try to push bitcoin aside, they will fail because majority now understand bitcoin much more then they do..

[Patikno]

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 believe that no one will be able to eliminate Bitcoin or gain control over it, because I believe people will prefer Bitcoin fundamental principles, namely privacy and decentralization. Based on the information I have read, ETFs are centralized, which is contrary to Bitcoin itself.

Bitcoin ETFs give you price tracking without connecting you to a blockchain. It is a centralized process where you buy shares just like any stock, and with regulation under SEC rules.

Source : ledger.com - Bitcoin ETFs

So, I think people are now starting to believe more in decentralization than in decentralization, which means there won't be any threat to Bitcoin. Simply put, people will believe more in full control, than in control. Beyond that, I think the ETF is a way for them to capitalize profits from Bitcoin, allowing them to exert some (indirect) control over Bitcoin. I hope you know what I meant. Cmiiw.

[batang_bitcoin]

If we're happy with how these companies applied for a Bitcoin ETF, then we should also feel the same or just be neutral with what they do. So, it's nothing wrong and it's even giving more adoption to the usage of blockchain. And whoever called blockchain used for scams before, they're not wrong because in fact ICOs have a lot of scams and that's why they're angered by it. We shouldn't limit the usage of blockchain because we're bias that it should only for bitcoin, altcoins but it's for everyone including nasdaq which will do that.

[nelson4lov]

Imo, Bitcoin isn't going anywhere. As a matter of fact, some of the effect and liquidity that will flow to stocks onchain will flow to Bitcoin in a cascading way.

I try to think that institution have accepted Bitcoin and no matter whatever is brought onchain or tokenized, Bitcoin would reign supreme over them. Stocks existed long before Bitcoin and tokenized stock won't make it any different from that.

Everyone wanted ETFs, institutions and their liquidity but don't need any negatives?

[GreatArkansas]

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

Its probably a mix of both. Nasdaq tokenizing stocks definitely gives blockchain tech a stamp of legitimacy, which indirectly helps Bitcoin by killing the old scam only narrative. But their version of tokenization will still be centralized and fully controlled, which means theyll cheer for tokenized Apple but still call BTC too risky. What this really does is take away some of Bitcoin’s edge on speed and settlement, but at the same time it makes BTC’s real value clearer.

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?