The U.S. Securities and Exchange Commission has approved Nasdaq’s proposal to allow certain securities to trade and settle in tokenized form, opening the door for blockchain-based settlement inside the U.S. equity market.
What the SEC approved
The approval covers a Nasdaq rule change filed in September.
Under the framework, eligible securities can trade either as traditional book-entry shares or as blockchain-based digital tokens.
Settlement would still run through the Depository Trust Company, preserving the existing market structure while adding a tokenized option.
Which securities are included
Nasdaq said the initial group will be limited to stocks in the Russell 1000 Index.
It also includes exchange-traded products tied to major benchmarks such as the S&P 500 and the Nasdaq 100.
That means the rollout is focused on high-volume, widely followed securities rather than smaller or less liquid names.
How tokenized trading works
Investors would be able to buy and sell tokenized versions of eligible securities alongside their traditional counterparts.
The tokenized shares would represent the same security, rather than a separate instrument.
Reuters reported that the move would let investors trade those securities as standard shares or as blockchain-based tokens settled through DTC.
Broader exchange push
The decision comes as exchanges step up efforts around tokenization, a sector that has drawn growing attention across digital asset markets.
Reuters said exchange operators have been trying to capitalize on rising interest in tokenized finance as crypto regulation eases under the Trump administration.
Nasdaq is not alone.
Intercontinental Exchange, the parent company of the New York Stock Exchange, said earlier this year that it had developed a platform for trading and on-chain settlement of tokenized securities and is seeking regulatory approval.
