The U.S. Securities and Exchange Commission has approved a Nasdaq rule change that clears the way for trading securities in tokenized form on the exchange, according to a report circulating on Telegram. The approval, issued March 18, 2026 under Release No. 34-105047, marks one of the most concrete steps yet toward merging blockchain-based infrastructure with traditional equity markets.
The SEC order approves Nasdaq’s proposed rule change, filed as SR-NASDAQ-2025-072 and modified by Amendment No. 2, to allow certain securities to trade on Nasdaq in tokenized form during a pilot program run by the Depository Trust Company.
The approval does not mean tokenized trading begins immediately. Nasdaq has said it will provide at least 30 calendar days’ notice before launch, and the rule becomes operational only after DTC’s post-trade settlement infrastructure is fully established.
What the Approval Actually Covers
Under the approved framework, tokenized shares would remain legally equivalent to their traditional counterparts. They would share the same CUSIP, the same ticker symbol, and the same shareholder rights and privileges as conventional shares.
Tokenized and traditional shares would trade on the same order book, subject to the same surveillance and market-structure controls. Settlement would continue on a T+1 basis through DTC rather than through a separate parallel system.
The initial universe of eligible securities is limited to Russell 1000 constituents at launch, along with certain ETFs tracking major indexes such as the S&P 500 and Nasdaq-100. This is not a blanket approval for all tokenized stocks.
The distinction matters for traders watching how regulatory developments ripple through crypto and traditional markets. This is a narrow, controlled integration, not a wholesale shift to blockchain-based equity trading.
Why This Sits at the Intersection of Crypto and Capital Markets
Tokenized securities use blockchain-based representations of traditional financial instruments. Unlike standalone crypto tokens, they remain fully subject to federal securities laws, a point the SEC has reinforced repeatedly in recent months.
That Nasdaq, one of the world’s largest stock exchanges, is now cleared to handle tokenized trades signals that the concept has moved beyond niche crypto venues and into regulated market infrastructure. The SEC found the proposal consistent with Exchange Act Section 6(b)(5), which requires rules to protect investors and promote fair dealing.
Tal Cohen, a senior Nasdaq executive, has described the initiative in broad terms. “The integration of tokenization and traditional markets offers an extraordinary opportunity,” Cohen said in comments reported by Investing.com.
The approval builds on two earlier SEC actions. In December 2025, the agency issued a no-action letter allowing DTC to develop a preliminary tokenization service for eligible securities. Then in January 2026, SEC staff published a statement clarifying that tokenized securities remain subject to the same federal laws as their traditional equivalents.
SEC Commissioner Hester Peirce, who has been vocal on crypto regulation, called “DTC’s tokenized entitlement model a promising step along the tokenization journey” in a statement tied to the earlier no-action letter. Investors who have been following the SEC’s evolving approach to crypto-related risks will recognize this as part of a broader, incremental regulatory framework rather than a single dramatic shift.
What Traders, Issuers, and Platforms Should Watch Next
The approval leaves several practical questions open. DTC must finalize its settlement infrastructure before any tokenized trades can execute. Until that milestone is reached, the rule change is approved on paper but dormant in practice.
Market participants will need clarity on the exact launch timeline, which securities will be included in the first cohort, and how the tokenized layer interacts with existing brokerage and custody workflows. Nasdaq’s 30-day advance notice requirement provides a built-in signal to watch.
Further exchange notices, issuer announcements, or DTC operational updates would shape the real market impact. For now, the approval establishes the legal and regulatory foundation, not the live trading environment.
The story also matters in the context of broader market positioning. As Bitcoin traders navigate technical patterns and key levels, regulatory developments like this one reshape the structural landscape in which digital and traditional assets coexist.
Many fast rewrites of this story will frame it as an immediate green light for tokenized stock trading. The SEC order says otherwise. What was approved is a framework, tied to a pilot, contingent on infrastructure that does not yet exist. The significance is real, but so are the conditions attached to it.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
