Nasdaq Receives Approval for Tokenized Securities Trading

The U.S. Securities and Exchange Commission (SEC) granted approval on Wednesday for a pivotal rule change that enables Nasdaq, one of the world’s largest stock exchanges, to engage in trading tokenized securities. This move has the potential to speed up the adoption of blockchain technology within mainstream financial markets.

Key Takeaways:

The SEC has approved Nasdaq's trading of tokenized securities, a significant step for blockchain in finance.
Tokenized securities allow for continuous trading and quicker settlements using digital tokens.
Nasdaq’s pilot program will collaborate with the DTC to ensure regulatory compliance.
Partnerships with Kraken and Boerse Stuttgart are in place to enhance the infrastructure for tokenized securities trading.

Nasdaq

SEC Endorses Nasdaq's Regulation Changes

The SEC approved Nasdaq’s updated regulations after a thorough seven-month review that began in September 2025. The revisions were made to ensure that Nasdaq adheres to federal securities laws and protects investors.

To explain further, tokenized securities are digital representations of traditional financial assets—such as stocks, bonds, or funds—where ownership information is stored as digital tokens on a blockchain. Advocates argue that tokenization allows for continuous trading, faster settlement times, and fractional ownership, thereby modernizing market infrastructure that has depended on outdated systems.

According to the SEC's announcement, Nasdaq's sanctioned pilot program will work alongside the Depository Trust Company (DTC), creating a regulated pathway for market participants to trade these digital securities.

International Framework for Tokenized Securities

The SEC’s endorsement paves the way for various industry initiatives already in progress. Earlier this month, Payward, the parent company of cryptocurrency exchange Kraken, announced a collaboration with Nasdaq to develop an equities transformation gateway.

This project integrates Nasdaq’s regulated market framework with Kraken’s xStocks system, aiming to facilitate the smooth transfer of tokenized equities between regulated institutional environments and decentralized finance (DeFi) networks. Nasdaq stated that this partnership will support a new equity token design that maintains control for issuers, complies with current regulatory requirements, and preserves the traditional rights associated with corporate shares.

Additionally, Nasdaq revealed earlier this month a partnership with Boerse Stuttgart Group’s tokenized settlement platform, Seturion, to connect its European trading locations with settlement systems designed for tokenized securities.

Nasdaq The daily chart indicates a decline in the total cryptocurrency market cap, now at $2.4 trillion. Source: TOTAL on TradingView.com Featured image from Reuters, chart from TradingView.com