Will U.S. stocks become “open year-round”? Nasdaq and NYSE plan to push stock tokenization, but some institutions warn “Don’t treat tokens as stocks”

On Monday, Nasdaq announced plans to launch a new tokenized equity framework, aiming to help listed companies better control their tokenized shares. This framework is scheduled to go live in the first half of 2027, at which time holders of tokenized equities will enjoy the same governance rights as investors in the underlying securities.

Nasdaq stated that all issuers interested in joining the program are eligible to participate, including those not listed on Nasdaq.

Nasdaq also announced on Monday that it will work with its partner Payward (parent company of the crypto exchange Kraken) to design a conversion channel allowing tokenized stocks to transfer between regulated markets and on-chain markets.

For the U.S. stock market, the main transformation brought by "on-chain equities" lies in the concept of "markets never closing." In addition to 24/7 trading, tokenization could enable near-instant settlement and potentially lower intermediary costs.

This also means the U.S. stock market is exploring ways to achieve year-round “7x24 hour trading.”

In fact, as early as September 2025, Nasdaq had filed an application with the U.S. Securities and Exchange Commission to allow investors to trade tokenized versions of stocks.

At that time, Nasdaq President Tal Cohen stated in a LinkedIn post: "Combining tokenization technology, blockchain technology, and traditional market infrastructure creates an outstanding development opportunity for the global financial system."

It’s also worth noting that in mid-January of this year, the New York Stock Exchange announced it was developing a blockchain-based “tokenized securities” trading platform aimed at achieving “7*24 hour” round-the-clock stock trading. NYSE further stated it would seek regulatory approval to allow companies to issue securities in the form of digital tokens.

However, there are also concerns in the market. According to The Wall Street Observer, a report from the World Economic Forum in May last year identified insufficient secondary market liquidity and the lack of clear global standards as the two main challenges to the widespread adoption of tokenization.

According to Reuters, the World Federation of Exchanges (WFE), the industry group for major global stock exchanges, has called for regulators to strengthen oversight of "tokenized stocks," stating that these products could mimic equities without providing shareholder rights and safeguards, potentially harming investor interests and market integrity. WFE noted that some platforms promote these products as "US stock tokens" or "equivalent to stocks," but they are not actual stocks and could pose reputational risks to listed companies involved.