The U.S. Securities and Exchange Commission (SEC) has officially approved Nasdaq’s plan to introduce tokenized stock trading, marking a historic step toward integrating blockchain technology into traditional financial markets.
The approval allows Nasdaq to offer certain stocks and exchange-traded products in both traditional and tokenized formats, meaning investors can hold the same asset either as a conventional share or as a blockchain-based digital token.
Tokenized Stocks Enter the Main Market
Under the new framework, tokenized equities will be fully integrated into Nasdaq’s existing trading system, not separated into a different marketplace.
Key features include:
Tokenized and traditional shares trade on the same order book
Investors receive identical rights (dividends, voting, ownership)
Same ticker symbols and CUSIP identifiers
Standard T+1 settlement via the Depository Trust Company (DTC)
Initially, eligible assets will include:
Stocks in the Russell 1000 Index
ETFs tracking major benchmarks like the S&P 500 and Nasdaq-100
This ensures the rollout starts with high-liquidity, large-cap assets.
How the Tokenization Process Works
Investors will be able to choose whether they want their shares in tokenized or traditional form at the time of trade by selecting a “tokenization flag.”
The process works as follows:
Trade executes normally on Nasdaq
Settlement occurs through existing infrastructure (DTC)
Shares are then converted into blockchain-based tokens post-trade
While settlement remains T+1 for now, once tokenized, the assets can be transferred more efficiently and potentially used for collateral, margin, or DeFi integrations.
A Major Step Toward On-Chain Equities
This is the first time a U.S. stock exchange has received regulatory approval to integrate tokenized securities directly into its core trading infrastructure.
The move reflects a broader trend across Wall Street, where major institutions are racing to adopt tokenization to:
Improve settlement efficiency
Enable 24/7 trading in the future
Reduce reliance on legacy financial infrastructure
Competitors like the NYSE (Intercontinental Exchange) are also developing similar blockchain-based systems.
