SEC Approves Tokenized Securities Trading

SEC Approves Tokenized Securities Trading on Nasdaq

• The US SEC has approved a Nasdaq rule change allowing securities to be traded in tokenized form.
• Eligible assets include stocks from the Russell 1000 and ETFs tracking indices like the S&P 500.
• Tokenized securities will share the same ticker, CUSIP, and shareholder rights as traditional shares.
• A pilot program led by the Depository Trust Company will manage post-trade settlement and tokenization processes.
• Nasdaq’s trading infrastructure remains unchanged, supporting all order types for both tokenized and traditional shares.

The SEC’s approval of Nasdaq’s rule change integrates blockchain-based assets into traditional markets, allowing stocks like those in the Russell 1000 to be traded as tokenized assets with existing protections.