Nasdaq Wins SEC Approval to Trade Tokenized Securities in Pilot Program

Nasdaq Wins SEC Approval to Trade Tokenized Securities in Pilot Program Nasdaq’s proposal to trade some stocks in tokenized form received formal approval from the U.

S.

Securities and Exchange Commission, though the structure would still keep trading and settlement within traditional market rails.

Covering some securities already listed on the national securities exchange, the changes would begin with Russell 1000 stocks and certain index ETFs, with tokenized shares required to match their traditional counterparts in terms of rights, symbols, and trading priority.

Tokenization is the process of turning a traditional asset, such as a stock or ETF, into a digital asset on a blockchain.

tied to the original security that carries the same rights.

Participating brokers can mark an order for tokenized settlement when they enter it,.

and Nasdaq would pass that instruction to the Depository Trust Company after the trade is executed. If DTC cannot carry out the request because the broker or security is not eligible, or because the blockchain or wallet is not compatible, the trade will settle in traditional, non-tokenized form. This development represents a significant step toward integrating blockchain technology with traditional financial markets. while maintaining regulatory compliance and investor protection standards. Stay informed with the latest developments in cryptocurrency and blockchain technology..

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