By Tom Ozimek
Nasdaq has asked regulators to let investors trade tokenized versions of listed securities—such as common stocks—on its main market.
In a Sept. 8 filing with the Securities and Exchange Commission (SEC), the exchange proposed allowing any listed stock or exchange-traded product to trade in either its usual digital form or as a blockchain-based token, with no change to how orders are entered or executed.
If approved, it would mark the first time tokenized securities are allowed on a major U.S. stock exchange.
Tokenization, as Nasdaq explains, means recording aspects of a securities transaction on a blockchain, a shared digital ledger that is encrypted, distributed, and maintained collectively to ensure integrity and prevent tampering.
“Blockchain technology can provide a number of potential efficiencies, including faster settlements, improved audit trails, and a more streamlined flow from order to trade to settlement,” Chuck Mack, senior vice president of North American markets for Nasdaq, said in a statement.
“All of this potential means there’s excitement around this technology, and we’re hearing from the market that there is demand for a way to trade tokenized securities. We want to be a part of the solution, helping markets evolve to continue to meet investor needs and making sure it’s done right.”
Under Nasdaq’s plan, investors could choose whether to hold their shares in the standard format or in tokenized form. If tokenized, the Depository Trust Company (DTC) would handle the clearing and settlement, recording the asset as a blockchain-based token. Nasdaq said the first such trades could take place in late 2026, once DTC systems are ready.
Tokenized and traditional shares would be allowed to sit on the same order book only if they have the same CUSIP identification code and give investors the same rights, such as dividends and voting. If not, Nasdaq would treat the token as a separate instrument, similar to a derivative.
The exchange describes the rule changes as “minor,” just enough to allow tokenized trading under existing market infrastructure.
Mack called the approach “simple and clear.” But the proposal touches on the very definition of a stock and how trades are settled—a step that could move tokenization from the edges of crypto into the core of Wall Street.
“Over time, U.S. equity markets have thrived while absorbing successive waves of technological innovations,” the Nasdaq filing stated, citing the rise of electronic trading and algorithmic strategies.
“Securities tokenization is another new technology with potential applications for the securities markets.”
The SEC said it will publish the proposal for public comment before deciding whether to approve it.
Broader Policy Backdrop
Nasdaq’s move comes as the Trump administration and regulators take a friendlier stance toward digital assets. In July, President Donald Trump signed the GENIUS Act, the first major law setting rules for stablecoins, including reserve requirements and anti-money laundering safeguards.
A White House working group chaired by adviser David Sacks also issued a report urging regulators to give Americans clear rights to hold digital assets and pushing for the SEC and Commodity Futures Trading Commission (CFTC) to create safe harbors and regulatory sandboxes for innovation.
SEC Chair Paul Atkins has backed those recommendations, calling them a milestone and the “best way to catalyze American innovation, protect investors from fraud, and keep our capital markets the envy of the world.”
Earlier this month, Atkins and CFTC Acting Chair Caroline Pham pledged to harmonize their rules and expand flexibility for crypto products, part of a broader effort to bring blockchain finance under U.S. oversight rather than leaving it offshore or in a regulatory “no man’s land.”
At a joint roundtable later this month, the SEC and CFTC plan to discuss steps such as longer trading hours, clearer rules for prediction markets, allowing perpetual contracts now common overseas, shared margin rules across markets, and limited exemptions for decentralized finance.
The goal, they say, is to cut red tape, boost liquidity, and keep fast-growing crypto products under U.S. oversight.
