Headline: SEC greenlights Nasdaq’s plan to trade tokenized shares, a major step for on-chain equities
The U.S. Securities and Exchange Commission on Wednesday approved Nasdaq’s proposal to let certain securities trade in tokenized form — a milestone move bringing blockchain settlement into the U.S. equity markets.
Under the approved framework, eligible Nasdaq participants can opt to have trades settled as blockchain-based tokens instead of the traditional book-entry settlement. The Depository Trust Company (DTC) will run a pilot to clear and settle those tokenized trades, tying Nasdaq’s plan into existing market infrastructure. Nasdaq first filed for regulatory permission in September.
Tokenized and traditional shares will coexist on the same order book and trade at the same prices. Tokenized shares will carry identical rights, use the same ticker and CUSIP identifiers, and remain subject to the same market rules as their traditional counterparts. The SEC said the structure satisfies investor protection standards, maintaining surveillance, data reporting and settlement timelines.
Why it matters: tokenization can enable near-instant, around-the-clock trading and settlement by putting ownership records on a blockchain while keeping tokens tethered to real-world assets. That capability has turned tokenization into one of the fastest-growing corners of the digital-asset space.
The approval follows broader industry momentum: Nasdaq is building a framework for listed companies to issue blockchain-based versions of their stock and has partnered with crypto exchange Kraken to distribute tokenized shares globally. The owner of the NYSE, Intercontinental Exchange (ICE), has also invested in crypto exchange OKX and signaled plans to launch tokenized stocks and crypto futures.
This regulatory nod from the SEC could accelerate adoption by integrating tokenized securities into familiar market plumbing while keeping core protections and oversight intact.
Read more AI-generated news on: undefined/news
