- The SEC approved Nasdaq’s rule change to enable tokenized versions of certain securities to trade on its exchange.
- Applies to Russell 1000 stocks and ETFs tracking S&P 500 and Nasdaq-100 indices.
- Tokenized shares trade on the same order book with identical prices, tickers, CUSIP numbers and investor rights.
- Settlement occurs through the Depository Trust Company’s (DTC) tokenization pilot for eligible participants only.
- Approval follows Nasdaq’s September 2025 filing and builds on its Kraken partnership for tokenized issuance.
The U.S. Securities and Exchange Commission has approved Nasdaq’s proposal to allow trading of securities in tokenized form, a significant step toward embedding blockchain technology within traditional U.S. equity markets.
The approval was granted on March 18, 2026, for the rule change filed under File No. SR-NASDAQ-2025-072, enabling DTC-eligible participants to opt for blockchain-based tokenized settlement during the DTC Pilot.
In the official SEC order, tokenized securities will operate alongside conventional book-entry shares on the same venue, maintaining full market surveillance, data reporting and settlement timelines.
Eligible securities include those in the Russell 1000 Index and exchange-traded products tracking major indices, ensuring tokenized versions carry the same economic rights and identifiers as their traditional counterparts.
The framework addresses prior regulatory concerns around surveillance and pricing divergence through amendments, while keeping all activity within existing market infrastructure.
This development follows Nasdaq’s earlier collaboration with Kraken to support tokenized stock distribution and issuance, as reported in industry coverage.
By preserving investor protections and traditional rails, the pilot positions Nasdaq to test more efficient settlement processes without disrupting current operations.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.