TLDR
- The SEC approved Nasdaq’s plan to allow certain stocks to trade as blockchain-based tokens
- Tokenized shares will trade on the same order book as traditional shares, at the same price and with the same rights
- Only “eligible participants” can join the pilot, limited to Russell 1000 stocks and certain ETFs
- The Depository Trust Company will handle clearing and settlement of tokenized trades
- Nasdaq has partnered with Kraken to distribute tokenized stocks globally
The SEC approved Nasdaq’s proposal on Wednesday to allow certain securities to trade in tokenized form on its exchange.
NEW: 🇺🇸 SEC approves Nasdaq rule change to allow tokenized securities trading. pic.twitter.com/Z4ex5xRB1h
— Altcoin Daily (@AltcoinDaily) March 19, 2026
The approval marks a step toward integrating blockchain technology into U.S. stock markets.
Nasdaq first filed its proposal in September, seeking permission to run a pilot program with the Depository Trust Company, which will manage clearing and settlement of tokenized trades.
Under the framework, eligible participants can choose to trade stocks in either a traditional or tokenized form.
Tokenized shares will sit on the same order book as regular shares. They will trade at the same price, use the same ticker and carry the same investor rights.
The pilot is limited to securities in the Russell 1000 Index, which tracks the 1,000 largest publicly traded companies in the U.S. by market cap. ETFs tracking the S&P 500 and Nasdaq-100 are also included.
The SEC said the structure meets investor protection standards. Surveillance, data reporting and settlement timelines remain in place.
Tokenization is a process where a real-world asset is represented as a token on a blockchain. It allows for faster settlement and can support longer trading hours.
The SEC had received feedback during its review raising concerns about market surveillance and the risk of prices diverging between tokenized and traditional shares. Nasdaq addressed those concerns through an amendment with more detail.
Nasdaq’s Broader Tokenization Push
Earlier this month, Nasdaq announced it would work with crypto exchange Kraken to let clients move securities into tokenized form on blockchains. The partnership also aims to let public companies issue their own tokenized shares.
Intercontinental Exchange, which owns the New York Stock Exchange, has also moved into this space. It invested in crypto exchange OKX in early March with plans to launch tokenized stocks and crypto futures.
What the SEC Said
SEC Chair Paul Atkins said on Tuesday that the agency would soon seek public comment on a range of crypto-related exemptions. This includes a proposed fundraising exemption that would let some crypto-related securities raise a set amount within a 12-month period without registering under securities laws.
The Nasdaq pilot runs alongside a broader DTC program designed to test blockchain-based trade settlement across U.S. markets.
Nasdaq filed its original request in September 2025. The SEC approved the proposal on March 18, 2026.
Only eligible participants may take part in the pilot. Participation is optional, and participants can choose between traditional or tokenized trading for each transaction.
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