SEC Approves Nasdaq’s Landmark Tokenization Plans for U.S. Equity Markets
March 20, 2026 — In a significant step toward integrating blockchain technology into traditional finance, the U.S. Securities and Exchange Commission (SEC) on March 18, 2026, approved Nasdaq’s proposal to enable the trading of certain securities in tokenized form.
The approval, detailed in SEC Release No. 34-105047 for File No. SR-NASDAQ-2025-072, greenlights Nasdaq’s rule changes filed in September 2025 (with subsequent amendments). This marks one of the most concrete advancements yet for Real World Assets (RWAs) and regulated tokenization on a major U.S. stock exchange.
What the Approval Allows
Under the new framework, eligible Nasdaq participants can trade high-volume stocks and exchange-traded products (ETPs/ETFs) either as traditional book-entry shares or as blockchain-based digital tokens. Both versions will:
- Share the same ticker symbol, CUSIP number, price, and order book.
- Carry identical investor rights, including dividends, voting, and other privileges.
- Trade interchangeably with the same execution priority.
The key difference lies in settlement: Buyers can designate orders for tokenized settlement via a flag at order entry, specifying blockchain and wallet details where applicable. Tokenization primarily occurs as a post-trade process.
This operates within Nasdaq’s existing market structure rather than creating a parallel crypto-native system. Clearing and settlement tie into a pilot program run by the Depository Trust Company (DTC), following a December 2025 SEC no-action letter that enabled DTC’s tokenization services.
Scope and Limitations
The pilot initially focuses on:
- Stocks in the Russell 1000 Index (at launch and future additions).
- Major ETFs tracking benchmarks such as the S&P 500 and Nasdaq-100.
Nasdaq will periodically publish lists of eligible securities via Equity Trader Alerts. Only DTC-eligible participants (those approved for the pilot) can opt for tokenized settlement. The program remains a controlled test, with full rollout dependent on DTC’s infrastructure readiness—potentially later in 2026.
Why It Matters
Tokenization promises benefits like faster settlement (potentially moving beyond T+1 toward real-time or T+0), improved efficiency, greater transparency, fractional ownership, and programmability—while preserving full regulatory compliance, KYC, investor protections, and surveillance.
Nasdaq has described the initiative as an evolutionary step in market infrastructure, comparable to past innovations like decimalization or electronic trading. It bridges traditional finance and blockchain without disrupting core market operations.
John Zecca, Nasdaq’s executive vice president and global chief legal, risk, and regulatory officer, noted that the approval affirms tokenization can fit within the existing U.S. regulatory framework while empowering issuers and maintaining investor safeguards.
Broader Context
The move aligns with growing institutional interest in RWAs and follows DTC’s December 2025 no-action letter, which also covers certain Treasuries. Similar efforts are underway across the industry, including from other exchanges and asset managers.
While not a full embrace of decentralized finance (DeFi), this regulated pilot represents a pragmatic on-ramp for blockchain in capital markets. Industry observers see it as a foundation for future expansions, such as 24/7 trading or atomic settlement, once the pilot demonstrates success.
The official SEC order is available on sec.gov. The development was widely reported by Reuters, CoinDesk, Seeking Alpha, and other outlets.
This approval underscores Wall Street’s accelerating adoption of blockchain technology while prioritizing stability and investor protection. Further details on implementation timelines and technical specifications are expected from Nasdaq and DTC in the coming months.
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