TLDR
- Nasdaq seeks SEC approval to trade tokenized securities by 2026 launch.
- Tokenized stocks may soon trade on Nasdaq alongside traditional equities.
- Nasdaq pushes SEC to allow blockchain-based securities on U.S. markets.
- Exchange files to integrate tokenized assets with standard stock trading.
- Nasdaq eyes 2026 rollout of tokenized securities pending SEC clearance.
Nasdaq has formally requested approval from the U.S. Securities and Exchange Commission to enable trading of tokenized securities. This move would allow traditional stocks and exchange-traded products to trade in tokenized form on Nasdaq’s primary market. If approved, this would mark the first such instance on a major American stock exchange.
Tokenized securities represent assets such as stocks or ETFs using blockchain technology, which can streamline settlement and improve access. Nasdaq’s filing suggests a shift toward integrating blockchain-based mechanisms within existing regulatory frameworks. The exchange aims to handle tokenized and traditional securities side by side with equal market priority.
This development follows recent updates in the SEC’s rulemaking agenda, which hint at relaxing rules on crypto-related trading platforms. Nasdaq appears to be capitalizing on this regulatory momentum to position itself ahead in digital asset infrastructure. The exchange emphasized that it can implement tokenized trading while maintaining the integrity of the national market system.
Nasdaq Proposes Unified Order Book and Execution Model
Nasdaq’s proposal includes treating tokenized securities the same as traditional assets—only if they carry identical material rights. This would ensure tokenized versions of securities offer the same benefits, including voting rights, dividends, and ownership status. If those rights are not included, Nasdaq will treat such instruments as separate classes.
All qualified tokenized securities would trade on the same order book as traditional securities. Execution priority, pricing models, and surveillance systems would remain unchanged to preserve market structure. Nasdaq confirmed that no exemptions from national market system protections would be necessary under its model.
Unlike several foreign platforms offering synthetic access to U.S. equities, Nasdaq plans to provide legally backed ownership through tokenized forms. The exchange believes this approach strengthens transparency while aligning with U.S. securities law. The SEC’s final decision will determine how soon this model takes effect.
Projected Rollout Depends on Clearing Infrastructure Readiness
Nasdaq estimates that tokenized securities trading could launch by the third quarter of 2026. This timeline hinges on the Depository Trust Company’s clearing infrastructure becoming operational. Once live, trades could settle in token form without impacting order routing or compliance mechanisms.
Several major financial firms, including Coinbase and Citi, have expressed interest in issuing tokenized equities or other digital assets. Nasdaq’s move formalizes this trend and brings tokenized securities into the core U.S. equity market. If successful, the proposal may set a precedent for other exchanges.
Under the leadership of SEC Chair Paul Atkins, the commission has opened the door to tailored crypto regulations. Nasdaq’s filing reflects a push to evolve without compromising market safeguards. The exchange maintains that strong oversight can coexist with innovation through tokenized securities.
