SEC greenlights Nasdaq tokenized securities trading pilot

The SEC approved Nasdaq’s rule change for tokenized securities trading and settlement, ensuring tokenized shares have the same rights as traditional ones. The DTC will manage the pilot, maintaining investor protections.

The U.S. Securities and Exchange Commission (SEC) has approved a Nasdaq rule change, paving the way for trading and settlement of tokenized securities on the exchange. This move marks a major milestone in the integration of blockchain technology with traditional financial markets. Under the new framework, eligible participants can opt for tokenized settlement using a designated order flag. Tokenized shares will retain full fungibility and identical rights as traditional shares, including voting, dividends, and residual claims. The pilot program, managed by the Depository Trust Company (DTC), will initially include select assets such as shares from major indices and ETFs. The SEC emphasized that investor protection standards, surveillance, and settlement timelines will remain unchanged. This development highlights the growing momentum for asset tokenization within regulated markets as institutions seek to modernize market infrastructure while adhering to existing regulations.