Nasdaq Seeks Approval to Trade Tokenized Securities
Nasdaq plans to offer tokenized stocks and ETFs on its main market by 2026, pending SEC approval.
- Nasdaq proposes SEC rule change for tokenized securities
- Tokenized stocks and ETFs could trade alongside traditional assets
- Launch expected as early as Q3 2026 if approved
In a major step toward modernizing financial markets, Nasdaq has filed a proposal with the U.S. Securities and Exchange Commission (SEC) to amend its trading rules. If the proposal is approved, Nasdaq will become the first U.S. stock exchange to allow tokenized securities—such as tokenized versions of stocks and ETFs—to trade alongside traditional financial instruments.
The move could open a new chapter in the evolution of blockchain-based finance, where digital representations of real-world assets are traded on regulated platforms. Nasdaq’s proposal highlights the growing interest from traditional financial institutions in integrating blockchain technology into everyday market operations.
What Are Tokenized Securities?
Tokenized securities are digital representations of traditional assets like stocks, bonds, or ETFs, issued and managed on a blockchain. These tokens maintain the same economic rights as their traditional counterparts but offer the potential benefits of faster settlement times, reduced operational costs, and broader market access.
Nasdaq’s plan would allow investors to trade these digital assets just like regular securities, but with the added advantages that blockchain can bring. This could improve market efficiency and open up new opportunities for both institutional and retail investors.
Timeline and Market Impact
If the SEC gives the green light, Nasdaq expects the new system to be up and running by the third quarter of 2026. The proposal represents more than just a technical change—it could be a defining moment for tokenized securities trading in the United States.
Allowing tokenized and traditional assets to coexist on a single exchange would legitimize the technology in the eyes of investors and regulators. It could also pave the way for other exchanges and financial institutions to follow suit, potentially accelerating the adoption of blockchain across capital markets.
As the industry awaits the SEC’s decision, all eyes will be on how this bold move could reshape the landscape of U.S. financial markets.
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