Nasdaq Files SEC Proposal to Trade Tokenized Securities

Nasdaq has filed a rule change proposal with the SEC to enable trading and settlement of tokenized securities on its regulated exchange. The plan expands the definition of securities to include blockchain-based tokens carrying CUSIPs, dividend rights and voting privileges identical to the underlying shares. After matching under existing rules, participants can choose settlement via traditional records or as blockchain tokens. Clearing by the DTCC on a permissioned ledger preserves regulatory oversight while unlocking 24/7 trading and near-instant T+0 settlement. The move aligns with a joint SEC-CFTC initiative to bring regulated crypto products into mainstream markets and defends Nasdaq’s market share against native crypto exchanges. Tokenized securities promise lower capital lock-up, fractional ownership and potential integration with DeFi protocols, boosting institutional capital efficiency and reducing counterparty risk. Retail benefits remain limited under current zero-commission trading and T+1 cycles. Nasdaq’s blockchain track record spans Linq, ChainCore and the Nasdaq Financial Framework. Major institutions including BlackRock, Franklin Templeton and KKR have issued tokenized fund assets, mainly via brokers. Global peers are already active: Hong Kong’s Fosun tokenized $328m of Sisram Medical shares on Solana and Ethereum, while China Merchants Bank piloted tokenized money-market funds on Solana. Pending SEC approval, Nasdaq could launch its tokenized securities platform by 2026, marking a critical step in regulated asset tokenization.