TD Securities: Nasdaq's tokenization plan may lead to trading being split into two markets

TD Securities warns that Nasdaq's tokenization plan could lead to a dual market structure in the US, with traditional exchanges operating alongside blockchain trading platforms. Reid Noch, Vice President of US Equity Market Structure at TD Securities, noted that Nasdaq is advancing three initiatives: upgrading trading and settlement processes, supporting companies in issuing tokenized shares, and promoting trading on offshore platforms like Kraken. The institution believes that while tokenized shares are backed by real stocks, they operate outside the US regulatory framework. This could lead to price discrepancies for the same asset on different platforms, potentially diverting trading activity from traditional exchanges and reducing market predictability.