Nasdaq said it is working with Boerse Stuttgart Group’s tokenized settlement platform Seturion to connect its European trading venues to infrastructure designed to settle securities using distributed ledger technology.
According to Monday’s announcement, the collaboration will initially focus on structured products and aims to support faster settlements of tokenized assets in European capital markets.
Seturion supports multiple asset classes on public and private distributed ledger networks and allows transactions to be settled using central bank money or on-chain cash. Boerze Stuttgart said the platform intends to be open to a wider network of financial institutions across Europe.
As part of the partnership, Nasdaq will connect its European trading venues with Seturion so that tokenized securities can be settled on these markets through the platform. The companies said they plan to expand participation to additional issuers, brokers and financial institutions over time.
The partnership aims to address the fragmentation of Europe’s post-trade infrastructure, where securities settlement is governed by multiple national systems with different rules and processes. Using distributed ledger technology, the companies say the shared platform can help reduce settlement time and operational complexity in European markets.
The European Central Bank said in April that there was an “urgent need to integrate Europe’s fragmented capital markets, not only in post-trade but also in supervisory and other areas”.
The system is designed to operate within the existing European regulatory framework, including MiFID II and the DLT Pilot Regime, which allows financial institutions to test distributed ledger technology in securities trading and settlement.
In February, Boerse Stuttgart Group said it would merge its cryptocurrency business with Frankfurt-based digital asset trading firm Tradias as part of a strategy to expand its presence in institutional crypto markets.
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Traditional exchanges are getting deeper into tokenized securities
Exchange operators are increasingly exploring tokenized versions of traditional securities as part of efforts to modernize capital market infrastructure.
Nasdaq said today that it is partnering with Kraken, a US-based crypto exchange and Backed tokenization infrastructure provider, to develop a gateway aimed at supporting tokenized stocks and maintaining issuer control.
In September, the Depository Trust & Clearing Corporation said it plans to bring a portion of US Treasury securities into the Canton Network, with the long-term goal of expanding tokenization to a wider range of assets eligible for custody at its subsidiary, the Depository Trust Company. The market infrastructure operator is expected to handle approximately 3.7 quadrillion dollars in 2024.
In January, the New York Stock Exchange and its parent company Intercontinental Exchange said they were developing a platform for trading tokenized stocks and exchange-traded funds that would support 24/7 trading and settlement based on blockchain.
Last week, Intercontinental Exchange announced that it has taken a seat on OKX after investing in the crypto exchange and plans to offer tokenized NYSE stocks and derivatives to OKX users starting in 2026.
According to RWA.xyz, tokenized public shares have grown to about $1.01 billion in total onchain value.
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