SEC Grants Nasdaq Approval for Tokenized Stock Trading

SEC approves Nasdaq's tokenized stock trading proposal.

The U.S. Securities and Exchange Commission (SEC) has approved Nasdaq’s proposal to trade tokenized stocks.

The initiative will involve securities from the Russell 1000 index and several ETFs. However, clearing and settlement will still occur through traditional market infrastructure. The tokenized assets (RWA) will retain all the characteristics of their conventional counterparts, including ownership rights, tickers, and trading priorities.

The process mechanics allow brokers to make special notations for RWA orders when entering trades. Once a transaction is executed, Nasdaq will send instructions to the Depository Trust Company (DTC).

If the DTC cannot fulfill the request due to blockchain, wallet incompatibility, or broker restrictions, settlements will proceed in the standard format without using tokens.

Nasdaq submitted the application last September, comparing tokenization to the historic shift to electronic trading. In November, the head of the exchange’s digital division, Matt Savarese, called the RWA direction a top priority.

In its approval letter, the SEC emphasized that placing a security on the blockchain does not change its legal status. The asset remains a stock, not merely a technological tool.

Experts have positively assessed the regulator’s decision. Clearpool’s Chief Operating Officer, Stephen Wu, described it as an important step towards programmable assets.

“The market structure has already moved from T+3 to T+1 settlements, but the ultimate goal is T+0 and continuous 24/7 trading,” he stated.

Samir Sen, head of international markets at Talos, added that institutional investors will closely monitor the liquidity of the new format and its integration into the existing clearing system.

An analyst known as Crypto Patel called the decision a significant step towards merging traditional finance and blockchain technology.

🇺🇸 BREAKING: SEC Approves Nasdaq Rule Change for Tokenized Securities Trading

What This Means:
→ Select stocks and ETFs can now be represented as blockchain-based tokens
→ Same investor rights, pricing, and market infrastructure preserved
→ A major step toward merging TradFi… pic.twitter.com/3MaFx7VDaT

— Crypto Patel (@CryptoPatel) March 19, 2026

“This is not just a rule change. It’s the official acceptance of Wall Street tokenization,” the expert emphasized.

Crypto Patel sees the approval as a “green light” for the tokenization segment and a bullish signal for Ethereum, ONDO, and the entire RWA ecosystem.

At the time of writing, the total capitalization of the sector stands at $27.32 billion.

Earlier in March, corporations accelerated the transition of stock markets to blockchain.