Key Takeaways
- Securities and Exchange Commission has authorized Nasdaq’s initiative to enable blockchain-based token trading for select equities
- Digital tokens and conventional shares will coexist on identical order books with matching prices and equivalent shareholder rights
- Participation is restricted to qualified entities, with Russell 1000 components and select ETFs eligible for tokenization
- The Depository Trust Company will oversee the clearing and settlement processes for tokenized transactions
- Nasdaq has established a strategic alliance with Kraken for worldwide distribution of tokenized securities
On Wednesday, the Securities and Exchange Commission granted approval to Nasdaq’s application for trading select securities as blockchain-based tokens on its platform.
NEW: 🇺🇸 SEC approves Nasdaq rule change to allow tokenized securities trading. pic.twitter.com/Z4ex5xRB1h
— Altcoin Daily (@AltcoinDaily) March 19, 2026
This regulatory approval represents a significant milestone in merging distributed ledger technology with American equity markets.
The exchange initially submitted its application in September, requesting authorization to operate an experimental program in collaboration with the Depository Trust Company, the entity responsible for processing clearing and settlement operations for tokenized transactions.
According to the approved structure, qualified market participants will have the option to execute stock trades using either conventional methods or tokenized alternatives.
Tokenized securities will be listed on identical order books as their traditional counterparts. Pricing will remain uniform, ticker symbols will stay unchanged, and all investor privileges will be preserved.
The experimental program encompasses only securities within the Russell 1000 Index, representing America’s thousand largest publicly listed corporations by market capitalization. Exchange-traded funds that follow the S&P 500 and Nasdaq-100 indices have also been approved for inclusion.
Regulators confirmed the framework complies with investor safeguarding requirements. Existing surveillance protocols, data disclosure obligations, and settlement schedules will continue operating without modification.
Tokenization involves creating digital representations of tangible assets as blockchain-based tokens. This technology enables accelerated settlement procedures and facilitates extended market operating hours.
During the regulatory examination period, the SEC collected input expressing apprehension about market monitoring capabilities and potential price disparities between tokenized and traditional share formats. Nasdaq resolved these issues by submitting a revised proposal with enhanced specifications.
Nasdaq’s Comprehensive Tokenization Strategy
Earlier this month, the exchange revealed its collaboration with cryptocurrency platform Kraken to enable customers to convert securities into tokenized formats on various blockchains. This strategic partnership additionally seeks to empower publicly traded corporations to generate their own tokenized equity offerings.
Intercontinental Exchange, the parent organization of the New York Stock Exchange, has similarly entered this emerging sector. In early March, it acquired a stake in cryptocurrency exchange OKX with intentions to introduce tokenized equity products and digital asset derivatives.
SEC’s Official Position
SEC Chairman Paul Atkins announced on Tuesday that the commission would imminently solicit public input regarding various cryptocurrency-focused exemptions. This encompasses a proposed capital-raising exemption that would permit certain crypto-related securities to collect specified amounts during a twelve-month timeframe without fulfilling registration requirements under securities regulations.
The Nasdaq experimental program operates in conjunction with a comprehensive DTC initiative created to evaluate blockchain-powered trade settlement mechanisms throughout American financial markets.
Nasdaq submitted its initial application in September 2025. Regulatory approval was granted on March 18, 2026.
Participation in the pilot program is restricted to qualified entities exclusively. Involvement remains voluntary, with participants retaining the discretion to select traditional or tokenized execution methods for individual transactions.
