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ARTICLE · 30 MARCH 2026

SEC Approves Nasdaq's Tokenized Securities Trading Proposal

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The SEC has approved Nasdaq's proposal to permit trading of securities in tokenized form, marking a significant development in the modernization of U.S. market infrastructure through blockchain technology.

United StatesFinance and Banking
Brenden Carroll
Brenden Carroll
Neel Maitra
Neel Maitra
Grey Pappas
Grey Pappas

Key Takeaways

  • The SEC has approved Nasdaq's proposal to permit trading of securities in tokenized form, marking a significant development in the modernization of U.S. market infrastructure through blockchain technology. The proposal builds on the Depository Trust Company's ("DTC") tokenization pilot program, which permits DTC participants to tokenize security entitlements and transfer them in tokenized form (the "DTC Pilot").
  • Under the new Nasdaq rules, market participants eligible for the DTC Pilot may trade tokenized versions of certain highly liquid equity securities and ETFs on the same order book and with the same execution priority as their traditional counterparts, provided the tokenized securities are fungible with and afford the same rights as their traditional counterparts.

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