Nasdaq Seeks SEC Nod to Bring Tokenized Securities Into US Trading

Nasdaq has taken a formal step to bring blockchain technology into U.S. stock trading, filing a proposal with the Securities and Exchange Commission (SEC) to enable tokenized securities on its exchange.

Balancing Innovation With Stability

The exchange said tokenized securities would trade like traditional stocks, preserving investor rights and market stability. It noted that U.S. equities markets already operate at a massive scale with strong regulatory safeguards.

“The integration of tokenization Tokenization Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen Read this Term and blockchain technology alongside traditional market infrastructure presents an exciting leap forward for the global financial system,” commented Tal Cohen, the President of Nasdaq.

“Significant advancements and successful applications of the technology are emerging across a range of asset classes, and tokenized securities are among the most closely watched developments,” he said.

Nasdaq’s plan seeks to capture the efficiency gains of blockchain while avoiding disruptions to existing systems. Nasdaq pointed to the rise of decentralized finance as evidence of how trading and clearing can evolve and as a cautionary tale of the risks of moving without safeguards.

The company stressed that governance and investor protection must be embedded from the start to ensure that tokenization strengthens rather than weakens market trust.

Working With Existing Infrastructure

Clearing houses, custodians, and other intermediaries remain critical to market operations. Nasdaq said its approach does not bypass these institutions but works with them to integrate blockchain-based processes, such as faster settlement cycles and modernized proxy voting, without undermining existing protections.

The SEC filing represents an early step in Nasdaq’s strategy to bridge traditional securities with blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term. If approved, it would mark one of the most significant efforts yet to bring tokenization into mainstream U.S. markets.

You may also find interesting: eToro Co-Founder Hints at “Ambitious” M&A Possibilities

One of the benefits of tokenization is the 24/7 access to securities, an area Nasdaq has been working on. Early this year, the exchange announced that it would move to offer 24-hour trading in U.S. equities five days a week, in a bid to capture growing global demand for American stocks.

The exchange operator cited rising retail participation, broader financial literacy, and the expansion of digital trading platforms as drivers behind the shift. This would allow investors across time zones greater access to U.S. markets.

“Nasdaq will enable 24-hour trading on the Nasdaq Stock Market. Pending regulatory approval and alignment with critical industry infrastructure providers, we anticipate our timeline being in the second half of 2026,” Cohen said.