Nasdaq Wins SEC Approval for Tokenized Stocks
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- Nasdaq won SEC approval to trade tokenized stocks and ETFs on blockchain rails alongside traditional shares, marking a formal integration of distributed ledger technology into U.S. equity markets.
- SEC approved Nasdaq’s proposed structure for issuing and settling tokenized securities, allowing blockchain-based trading to proceed under current regulatory oversight.
- DTCC will handle clearing and settlement of tokenized securities, preserving its role as central intermediary in a system critics say limits the decentralization potential of blockchain.
- Brian Steele of DTCC stated the firm aims to build 'safe, secure tokenization services' to advance a more resilient and efficient financial system, working with exchanges to scale adoption.
- Industry experts say the move paves the way for 24/7, global access to U.S. equities, a key advantage of moving trading infrastructure onto continuous blockchain networks.
Why it matters: Wall Street retains control over crypto innovation by embedding blockchain within existing intermediated structures, so while trading could become faster and more accessible, the cost and entry barriers for new financial players remain high. This contrasts with more open, decentralized models emerging in other jurisdictions.
