Nasdaq, one of the largest traditional stock exchanges with a daily trading volume of more than $400 billion, stressed that US equities already rank as the world’s most liquid and transparent markets, supported by rigorous oversight and advanced technology.
Cohen explained that the proposal would extend those strengths into the digital era rather than replace them.
According to him:
“The approach will ensure tokenized securities trade as regular securities, safeguarding both investors’ rights and the systemic stability of our markets through tested, resilient infrastructure. It seeks to capture the benefits of the technology while ensuring it matures in a way that best serves investors, issuers, and other stakeholders across global capital markets.”
He pointed out that the Nasdaq’s filing highlighted how tokenization could streamline long-standing market processes. According to him, the technology could introduce faster settlement cycles, lower transaction friction, and programmable corporate actions into the system.
Still, Cohen cautioned that such changes must not come at the expense of resilience or security.
He highlighted decentralized finance as a lesson in both potential and risk of integrating blockchain technology into the space.
According to him, DeFi platforms have demonstrated new ways of handling trading and clearing, but have also exposed vulnerabilities when growth outpaces governance.
Considering this, Cohen stressed that investor protection and operational stability must remain at the core as new technologies are introduced.
As a result, the exchange said it is ready to collaborate with infrastructure providers to explore applications such as modernized proxy voting and automated post-trade services.
