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The Nasdaq has submitted a proposed regulation modification with the SEC to utilize digitized equities, signifying a major incorporation of blockchain innovation into conventional finance (TradFi). Market analysts have forecasted that XRP is among the crypto assets poised to gain significantly from this development.
Nasdaq Submits Proposal To Trade Digitized Equities
Nasdaq has submitted to the SEC for permission for investors to trade digitized equities on its platform. The exchange suggests that these securities might be exchanged in either their conventional form, without employing blockchain technology, or in their digital form, leveraging blockchain technology. Additionally, the platform proposes that shares of these digitized securities should be transacted within the same order book as traditional securities and maintain the same execution precedence.
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In the meantime, Nasdaq suggests that market participants wishing to clear and finalize their trades will indicate their preference by selecting a flag that the exchange will allocate for this aim. When the market participant chooses the digitized flag, Nasdaq will subsequently notify The Depository Trust Company, which oversees the clearance of transactions.
This initiative indicates that blockchain networks, including Ethereum, Solana, and the XRP Ledger (XRPL), may see intensified adoption as companies move towards digitizing their shares. Remarkably, Galaxy Digital recently became the first Nasdaq-listed entity to digitize its common shares on Solana.
Analysts like Tom Lee have argued that Ethereum will serve as the preferred platform for firms to digitize their stocks. Concurrently, Solana and the XRP Ledger (XRPL) are distinguished due to their rapidity and cost-effectiveness. Solana has recently approved the Alpenglow upgrade proposal, aiming to enhance transaction finality. Meanwhile, the XRPL has implemented new compliance adjustments, which will motivate institutions to embrace the network.
All Digitized Assets Will “Route Through XRP”
In an X post, Versan Aljarrah, the founder of Black Swan Capitalist, remarked on Nasdaq’s application to list digitized equities and asserted that all digitized assets will ultimately route and settle through XRP as the intermediary currency. He further stated that this implies trillions in value will transit on-chain, potentially via the XRP Ledger.
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Aljarrah reiterated that all value converges through XRP. Importantly, crypto analyst Costa has recently projected that the XRP value could attain $473,214 if 10% of global assets are digitized on the XRPL.
This comes as Ripple anticipates that 10% of global assets will be digitized by 2030. Ripple has made substantial progress in its tokenization initiative, although no significant stocks have been digitized on the XRPL to date. However, it is noteworthy that Ondo Finance’s digitized U.S. Treasuries fund is integrated into the XRPL.
At the moment of writing, the XRP value is trading at approximately $2.95, having declined in the past 24 hours, according to data from CoinMarketCap.
Featured image from Adobe Stock, chart from Tradingview.com
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