Nasdaq has received regulatory approval in the U.S. to test tokenized versions of traditional securities—an incremental but significant step toward bringing parts of equity market infrastructure onchain.

### What happened

The U.S. Securities and Exchange Commission (SEC) approved Nasdaq’s proposal to allow certain securities to trade in tokenized form under a pilot structure tied to the Depository Trust Company (DTC), which would continue to handle clearing and settlement.

Under the framework, eligible Nasdaq participants can opt to have trades settled as blockchain-based tokens rather than through the standard book-entry process. Importantly, tokenized shares would trade **alongside** traditional shares on the **same order book** and at the **same price**, using the same ticker and CUSIP, and following existing market rules.

### Why it matters

Tokenization is often pitched as a way to enable faster settlement and potentially 24/7 market access for real-world assets. By structuring tokenized securities so that surveillance, reporting, and settlement timelines remain intact, Nasdaq and regulators are trying to capture efficiency gains without weakening investor protections.

The approval also signals that U.S. market structure players are willing to run tokenization experiments that remain compatible with existing rails—rather than attempting a wholesale migration to new systems.

### What to watch next

* **Scope of the pilot:** which securities and which participants qualify will determine how meaningful the test is.

* **Operational readiness:** custody, reconciliation, and corporate actions (dividends, splits) need to work seamlessly for tokenized and traditional shares.

* **Competitive pressure:** other major exchanges and trading venues are exploring tokenized equities, which could accelerate standard-setting.

If the pilot runs smoothly, the next phase could be broader product coverage and more frequent use of tokenized settlement—setting a precedent for how regulated U.S. exchanges integrate blockchain technology.