SEC Clears Way for Tokenized Stocks on Nasdaq
The U.S. Securities and Exchange Commission has approved a rule change allowing Nasdaq to trade securities in tokenized form, marking the first time a major American stock exchange has integrated blockchain technology into its equity trading infrastructure.
The approval covers Russell 1000 stocks and exchange-traded funds tracking the S&P 500 and Nasdaq-100 indexes. Tokenized shares are identical to their traditional counterparts, carrying the same ticker symbols, CUSIP identification numbers, and shareholder rights, and they trade on the same order book.
The decision arrives after a seven-month regulatory review, with both enthusiastic support and pointed opposition from industry participants. The tokenization step occurs after settlement is complete, and instant, atomic T+0 settlement is not yet delivered by this approval, but the infrastructure being built is designed to evolve toward that goal.