Nasdaq’s push into tokenisation could split equity trading into parallel markets, with traditional exchanges operating alongside blockchain-based platforms, according to TD Securities.
The shift may allow the same stocks to trade across multiple venues, raising the risk of price differences and fragmented liquidity between regulated US markets and offshore platforms.
TD Securities said Nasdaq is pursuing tokenisation through upgrades to settlement systems, enabling tokenised share issuance and supporting offshore trading venues such as Kraken.
These developments could create two distinct systems — one within US regulatory frameworks and another on blockchain-based platforms operating outside traditional oversight.
For investors, this could mean identical stocks trading at different prices depending on the platform, complicating price discovery and potentially shifting activity away from established exchanges.
“The expansion into offshore platforms could introduce a separate venue for trading the same underlying assets,”
Said TD Securities’ Reid Noch, highlighting risks tied to regulatory differences.
The trend comes as tokenised equity trading gains traction, with Kraken’s xStocks platform surpassing $25 billion in cumulative volume and competitors like Coinbase and NYSE accelerating similar initiatives.