<ul>
 <li>SEC approved Nasdaq’s tokenized trading pilot for select securities using blockchain settlement.</li>
 <li>Tokenized shares will match traditional shares in price, rights, and trading conditions.</li>
 <li>The pilot focuses on major index stocks and ETFs while maintaining existing market safeguards.</li>
</ul>
<p>The U.S. Securities and Exchange Commission <a href="https://x.com/EleanorTerrett/status/2034450575773884694?s=20" rel="noopener noreferrer nofollow">approved</a> a proposal from Nasdaq on Wednesday to introduce tokenized trading for select securities. The move allows eligible participants to settle trades using blockchain-based tokens instead of traditional systems. The decision aims to integrate blockchain into U.S. equity markets while maintaining existing protections and infrastructure.</p>
<h2 class="wp-block-heading" id="strong-tokenized-trading-framework-explained-strong"><strong>Tokenized Trading Framework Explained</strong></h2>
<p>Under the approved framework, participants can choose how trades settle. They may use either tokenized securities or standard book-entry systems. Notably, <a href="https://cryptofrontnews.com/kamino-crosses-1b-in-real-world-asset-lending-on-solana/" rel="noopener noreferrer nofollow">tokenized</a> shares will trade alongside traditional shares on the same order books.</p>
<p>They will carry identical tickers, prices, and investor rights. In addition, they will use the same CUSIP identification numbers. This structure ensures consistency across both formats.</p>
<p>According to the SEC filing, surveillance systems, reporting standards, and settlement timelines will remain unchanged. These measures address earlier concerns raised during the proposal review.</p>
<h2 class="wp-block-heading" id="strong-scope-limited-to-major-index-securities-strong"><strong>Scope Limited to Major Index Securities</strong></h2>
<p>The pilot program focuses on high-volume securities. Specifically, it includes stocks within the Russell 1000 Index. It also covers <a href="https://cryptofrontnews.com/blackrock-launches-staked-ethereum-etf-on-nasdaq/" rel="noopener noreferrer nofollow">exchange-traded funds</a> tracking the S&amp;P 500 and Nasdaq-100.</p>
<p>Only “eligible participants” can access the tokenized option. However, they retain the choice between traditional and blockchain-based settlement. This approach introduces flexibility without altering trading conditions.</p>
<p>Meanwhile, tokenized and traditional shares will match in price at all times. This alignment prevents discrepancies between the two formats.</p>
<h2 class="wp-block-heading" id="strong-dtc-role-and-industry-involvement-strong"><strong>DTC Role And Industry Involvement</strong></h2>
<p>The Depository Trust Company will handle clearing and settlement for tokenized trades. It will run the initiative as part of a broader pilot program. Nasdaq first filed the proposal in September. Since then, it has worked with DTC to refine the framework.</p>
<p>Separately, Nasdaq partnered with crypto exchange <a href="https://cryptofrontnews.com/kraken-linked-spac-targets-2b-10b-crypto-firms/" rel="noopener noreferrer nofollow">Kraken</a> to expand tokenized stock distribution. At the same time, Intercontinental Exchange invested in crypto exchange OKX to develop similar products.</p>
<p>According to the SEC, these developments follow growing interest in tokenizing traditional financial assets.</p>
<p>The post <a href="https://cryptofrontnews.com/sec-clears-nasdaq-plan-for-tokenized-stock-trading/" rel="noopener noreferrer nofollow">SEC Clears Nasdaq Plan for Tokenized Stock Trading</a> appears on <a href="https://cryptofrontnews.com" rel="noopener noreferrer nofollow">Crypto Front News</a>. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.</p>

SEC Clears Nasdaq Plan for Tokenized Stock Trading

Table of Contents

CFN

Other articles published on Mar 19, 2026

Join our free newsletter for daily crypto updates!