A quiet rivalry is forming at the intersection of traditional markets and blockchain. Crypto firms see tokenization as the Trojan horse that brings Wall Street onto public blockchains.
Key Takeaways:
Nasdaq wants tokenized stocks to operate inside the traditional securities system, not replace it.
The SEC decision will determine whether Nasdaq can move forward with its tokenization framework.
The crypto industry is split — some see tokenization as a bridge to blockchain, others as a win for Wall Street more than crypto.
Wall Street, meanwhile, is trying to ensure tokenization doesn’t reshape its hierarchy — and Nasdaq is now openly positioning itself to lead that version of the future.
Rather than treating tokenized equities as a crypto-native product, Nasdaq wants the model to function inside the existing structure of U.S. securities law. The goal is not to migrate capital away from the stock market — but to upgrade the stock market using blockchain rails.
That vision was outlined by Matt Savarese, head of digital asset strategy at Nasdaq, who said the exchange is pressing for rapid approval of its tokenized-stock framework. The message from Nasdaq is clear: tokenization should look like the stock market, not like DeFi.
SEC Approval Is the Gatekeeper
The exchange filed its rule-change proposal on September 8 and is now waiting for regulatory response. Savarese told CNBC that every round of public comments and SEC requests will be handled as fast as possible, and that cooperation rather than confrontation is the strategy.
Nasdaq has avoided framing tokenization as a revolution — a notable contrast to some voices in the crypto industry. Instead, the exchange is emphasizing continuity: tokens simply represent shares already listed on the exchange. Nothing about investor protections, disclosure requirements or listing rules is meant to change.
In other words, Nasdaq is betting that blockchain enters finance through regulation — not in spite of it.
Crypto’s Reaction Hasn’t Been Unified
Parts of the crypto space see the move as validation. Galaxy Digital became the first Nasdaq-listed company to tokenize its equity earlier this year on Solana, which CEO Mike Novogratz described as the beginning of a structural shift in capital markets.
But not everyone believes tokenization automatically benefits crypto. Dragonfly partner Rob Hadick warned that if tokenized shares run on L2s or permissioned chains controlled by large institutions, most of the value could circulate inside TradFi rather than on public networks like Ethereum. In that scenario, blockchains benefit Wall Street more than the crypto economy.
The disagreement isn’t about whether tokenization will happen — it’s about who stands to gain from it.
This Moment Has Been Decades in the Making
Nasdaq was the first exchange to make electronic trading mainstream, replacing paper tickets and manual clearing systems. Savarese is now framing tokenization as the next technological migration — not an ideological one. The goal is to bring blockchain inside the world of regulated securities, rather than force the securities world onto public blockchains.
While crypto entrepreneurs like Robinhood’s Vlad Tenev predict that tokenization will “eat the whole financial system,” Nasdaq is offering a more conservative promise: keep the system intact, but give it new infrastructure.
Whether investors want disruption or modernization may decide how tokenization unfolds — and whether crypto gains influence or watches Wall Street capture the value.
