SEC Greenlights Nasdaq Tokenized Trading Plans as Blockchain Enters U.S. Equity Markets

A major step toward merging traditional finance with blockchain infrastructure has arrived after the U.S. Securities and Exchange Commission approved a proposal from Nasdaq to enable certain securities to trade in tokenized form.

The initiative will operate alongside a pilot program led by the Depository Trust Company, which will oversee the clearing and settlement of these blockchain-based transactions. Originally filed back in September, the plan gives eligible Nasdaq participants the option to settle trades as digital tokens instead of relying solely on conventional book-entry systems.

Under this model, tokenized shares will function identically to their traditional counterparts. They will appear on the same order books, trade at the same prices, and retain the same ticker symbols and CUSIP identifiers. Investors will also benefit from unchanged rights and protections, as regulators confirmed that market surveillance, reporting standards, and settlement processes remain fully intact.

The approval highlights the growing momentum behind tokenization, a process that converts real-world assets such as equities, bonds, and funds into blockchain-based representations. This approach promises faster settlement times and the potential for round-the-clock trading, features that have increasingly attracted attention across the financial industry.

Nasdaq is not alone in pushing forward. The exchange recently revealed ambitions to allow listed companies to issue blockchain-native versions of their shares and has partnered with Kraken to expand global access to tokenized equities. Meanwhile, Intercontinental Exchange, the parent company of the New York Stock Exchange, has backed crypto platform OKX as part of its own strategy to develop tokenized stocks and crypto derivatives.

Together, these moves suggest that tokenization is quickly evolving from a niche concept into a core component of the next-generation financial system.