NEW YORK, 18 March 2026 – The Nasdaq has secured approval from the U.S. Securities and Exchange Commission to enable trading of tokenised securities, marking a major step toward integrating blockchain technology into mainstream financial markets.
The approval allows certain stocks and exchange-traded products to be traded not only in traditional form but also as blockchain-based digital tokens, signalling a structural shift in how equities may be issued, traded and settled in the future.
Bridging Traditional Markets and Blockchain
Under the new framework, eligible securities, including stocks within the Russell 1000 Index and major ETFs tracking benchmarks such as the S&P 500 and Nasdaq 100, can be traded as either conventional shares or tokenised equivalents.
Importantly, these tokenised versions will carry the same rights and identifiers as traditional shares, ensuring full interoperability between both formats. Settlement will continue to be processed through the Depository Trust Company, preserving core market infrastructure.
This hybrid approach reflects regulators’ effort to embrace innovation while maintaining investor protections and market stability.
A Step Toward 24/7 Markets
Tokenisation is widely seen as a gateway to continuous, 24/7 trading, faster settlement cycles and reduced transaction costs, features that could fundamentally reshape global equity markets.
Nasdaq’s move also aligns with broader industry efforts to modernise financial infrastructure using blockchain technology, with competitors such as Intercontinental Exchange, the parent of the NYSE, developing similar platforms for tokenised securities.
The involvement of crypto platforms as distribution partners further signals the convergence of traditional finance and digital asset ecosystems.
Regulatory Green Light Signals Policy Shift
The SEC’s approval reflects a more accommodating stance toward digital asset innovation under the current regulatory environment, particularly as financial institutions seek to capitalise on the growing demand for tokenised assets.
Despite some concerns raised by market participants, including issues around competition and market structure, regulators concluded that Nasdaq’s proposal meets investor protection standards.
Implications for Global Markets
The development is expected to accelerate adoption of tokenisation across global capital markets, with implications for:
- Market structure: Potential shift toward blockchain-based settlement systems
- Liquidity: Increased accessibility through fractional ownership and global distribution
- Trading hours: Movement toward round-the-clock equity trading
- Cost efficiency: Reduced clearing and settlement friction
For investors, tokenised securities could offer greater flexibility and accessibility. For exchanges and intermediaries, however, the shift may disrupt traditional revenue models tied to clearing, custody and brokerage services.
A Defining Moment for Financial Infrastructure
Nasdaq’s regulatory breakthrough represents one of the clearest signals yet that tokenisation is moving from experimentation to institutional adoption.
As more exchanges, asset managers and regulators embrace blockchain-based securities, the global financial system may be entering a new phase, one where digital and traditional assets operate seamlessly within the same ecosystem.
