SEC Approves Nasdaq Tokenized Stocks & ETFs for On-Chain Trading

The SEC has approved Nasdaq’s framework to trade certain tokenized stocks and ETFs on blockchain rails alongside traditional shares. The new model supports blockchain-based issuance and tokenized ownership (stored in investors’ wallets), while clearing and settlement still run through the DTCC. Eligible participants can choose the tokenized or traditional form for selected securities. Nasdaq says this step can help push US equities toward broader, more global access and potentially more continuous trading, with Kraken playing a role in global distribution of the stock tokens. Supporters frame the SEC decision as a clear signal that major equity market infrastructure could migrate toward tokenized, permissioned rails. Still, critics argue SEC approval is more “post-trade plumbing” than a full market overhaul. Tokenized stocks remain intermediary-heavy (broker-led, permissioned TradFi stack), which may limit linkage to wider on-chain liquidity and non-custodial execution—so near-term efficiency gains could be incremental rather than transformative. For crypto traders, this is a tokenized securities milestone, not a direct catalyst for crypto spot markets. Watch for second-order effects: changes in tokenized-equities liquidity, spreads, and any short-term sentiment rotation into tokenization infrastructure narratives.