Imagine a financial world where major U.S. stocks such as Tesla and Nvidia trade nonstop and transactions settle within seconds. That futuristic vision is inching closer to reality as momentum builds around tokenization — the process of turning traditional assets into digital versions recorded on a blockchain ledger.

 

Wall Street institutions and crypto companies are increasingly aligning around this concept, viewing it as the next frontier in global markets. Nasdaq recently submitted a proposal to U.S. regulators seeking approval to enable tokenized trading of listed stocks on its platform. If the Securities and Exchange Commission (SEC) grants permission, it would represent a major breakthrough in the integration of blockchain with mainstream finance. The SEC began collecting public feedback on the plan in September, with a final decision expected within two to three months.

 

Robinhood CEO Vlad Tenev described tokenization as an unstoppable force during a recent cryptocurrency conference in Singapore. “It’s like a freight train that will eventually consume the entire financial system,” he said. Over the past few months, Robinhood has expanded into Europe with the launch of more than 200 tokenized versions of U.S. stocks and exchange-traded funds.

 

Several major Wall Street players, including Goldman Sachs and BlackRock, have already begun experimenting with tokenized investment products. BlackRock has introduced tokenized money-market funds and is reportedly considering tokenized ETFs as part of its next phase of digital asset innovation.

 

BlackRock CEO Larry Fink highlighted the transformative potential of tokenization in his July shareholder letter, noting that nearly every financial asset — from equities to bonds — could one day exist in tokenized form. He said that if this shift occurs, financial markets would no longer need to close, and settlements that now take days could occur within seconds.