SEC Approves Nasdaq Tokenized Securities Trading Framework

The U.S. Securities and Exchange Commission has approved a proposal by Nasdaq to introduce tokenized securities trading, marking a significant step toward integrating blockchain technology into traditional equity markets. The decision allows select market participants to settle trades using blockchain-based tokens that mirror conventional shares.

Under the framework, tokenized stocks will trade alongside traditional equities on the same order books, carrying identical tickers, pricing, and investor rights. This ensures continuity in market structure while introducing new settlement mechanisms.

Blockchain Settlement and Market Structure

The initiative will operate in coordination with the Depository Trust Company, which will oversee clearing and settlement. Participants can opt to process transactions as tokenized assets instead of relying solely on standard book-entry systems.

Regulators noted that key safeguards remain intact, including trade surveillance, reporting standards, and settlement timelines, ensuring investor protection is maintained.

Growing Interest in Tokenization of Assets

Tokenization of traditional financial instruments such as stocks and bonds is gaining momentum across global markets. Alongside Nasdaq, firms like Intercontinental Exchange are also exploring blockchain-based trading solutions, reflecting broader industry interest in faster settlement and expanded market access.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.