The U.S. Securities and Exchange Commission (SEC) approved on Wednesday Nasdaq’s proposal to allow certain securities to trade in tokenized form, a significant milestone to integrate blockchain tech into U.S. equity markets.
Nasdaq’s tokenization plan ties into a pilot run by the Depository Trust Company (DTC), which will handle clearing and settlement of tokenized trades. Nasdaq filed for regulatory permission in September.
Under the framework, eligible Nasdaq participants can choose to have trades settled as blockchain-based tokens rather than through standard book-entry systems.
Tokenized shares will trade alongside traditional shares on the same order book and at the same price. They will carry identical rights, use the same ticker and CUSIP (identification number) and follow existing market rules.
The SEC said the structure meets investor protection standards, noting that surveillance, data reporting and settlement timelines remain intact.
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