SEC Greenlights Nasdaq’s Tokenized Securities Trading Plan

The U.S. Securities and Exchange Commission (SEC) has approved a Nasdaq proposal to allow select securities to trade in tokenized form, marking a significant step toward integrating blockchain technology into U.S. Equity markets. The approval, announced on Wednesday, March 18, 2026, enables Nasdaq to test blockchain-based versions of stocks that trade and settle like traditional shares.¹

How Tokenization Will Work on Nasdaq

Under the latest framework, eligible Nasdaq participants can opt to settle trades as blockchain-based tokens. These tokenized shares will trade alongside traditional shares on the same order book, at the same price, and with the same ticker symbols and CUSIP numbers.¹ Investors will retain identical rights, including voting rights and dividend access.

The SEC stated that the structure meets investor protection standards, with surveillance, data reporting, and settlement timelines remaining intact.¹

DTC’s Role in Clearing and Settlement

Clearing and settlement of these tokenized trades will be handled by the Depository Trust Company (DTC) as part of a pilot program.² Nasdaq initially filed for regulatory permission in September 2025.¹

Industry Momentum Behind Tokenization

Tokenization of traditional assets, including stocks, bonds, and funds, has gained significant traction in the digital asset space. Proponents argue that tokenization can enable faster settlement times, around-the-clock trading, and fractional ownership.²

Nasdaq isn’t alone in exploring this technology. Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), has invested in crypto exchange OKX with plans to launch tokenized stocks and crypto futures.¹ Nasdaq has also partnered with Kraken’s parent company, Payward, to build an equities transformation gateway, aiming to allow tokenized equities to move between traditional and decentralized finance (DeFi) networks.², ³

Eligible Securities

The initial framework will apply to certain securities, including stocks in the Russell 1000 Index and exchange-traded funds (ETFs) tracking benchmarks like the S&P 500.³

Key Takeaways

• The SEC has approved Nasdaq’s plan to allow trading of tokenized securities.
• The DTC will handle clearing and settlement for these trades.
• Tokenized shares will trade alongside traditional shares with the same rights and prices.
• This move is part of a broader industry trend toward integrating blockchain technology into financial markets.