The Nasdaq (NASDAQ:NDAQ) Stock Market has submitted a formal proposal to the US Securities and Exchange Commission (SEC) seeking approval to allow trading of tokenized stocks directly on its exchange.
If approved, this would mark the first integration of blockchain technology into the core infrastructure of American equity markets, according to Nasdaq.
Tokenized stocks are blockchain-based digital representations of traditional equities. Under Nasdaq’s proposal, they would carry the same shareholder rights, execution priority, and documentation standards as conventional shares.
Investors would be able to select, on a trade-by-trade basis, whether to settle trades in traditional electronic form or as tokenized shares.
The proposal would redefine what counts as a “security” to include tokenized shares, allowing them to be traded alongside conventional stocks on the same order book under existing market rules.
The Depository Trust Company (DTC) would handle clearing and settlement for tokenized trades, ensuring they are processed with the same reliability as traditional securities.
According to Nasdaq, blockchain-based securities could offer operational efficiencies, including faster settlement, improved audit trails, and a more streamlined flow from order to trade to settlement.
Nasdaq emphasizes that both tokenized and traditional shares would maintain the same value, rights, and market identification numbers, with all trading subject to existing federal regulations.
Chuck Mack, Nasdaq’s Senior Vice President of North American Markets, said the filing aims to integrate digital assets into Nasdaq’s infrastructure while maintaining stability, fairness, and investor protections.
“We want to make the process of trading tokenized securities straightforward and transparent for investors, while also drawing on the benefits of the current resilient and trusted equities trading ecosystem,” Mack said.
Nasdaq expects that tokenized stock settlements could begin as early as late 2026, pending regulatory approval and infrastructure readiness.
The move aligns with broader industry trends, as other platforms such as Coinbase and Robinhood are exploring tokenized stock offerings.