The U.S. Securities and Exchange Commission on March 18, 2026, approved a Nasdaq rule change that allows certain securities to trade on the exchange in tokenized form, marking one of the most concrete regulatory steps yet toward bringing blockchain-based equity trading into the national market system.
The approval, issued under Release No. 34-105047, covers Nasdaqโs filing SR-NASDAQ-2025-072 as modified by Amendment No. 2. It permits the exchange to list and trade tokenized versions of eligible securities during the pendency of the Depository Trust Companyโs tokenization pilot program.
The decision follows a regulatory timeline that began with Nasdaqโs September 8, 2025 filing, a December 12, 2025 SEC order instituting proceedings, and a January 27, 2026 notice covering the amended proposal. The approved framework is explicitly tied to the DTCC/DTC tokenization infrastructure established by the SEC staffโs December 11, 2025 no-action letter.
What the SEC approved and what Nasdaq can do next
The scope of the approval is narrower than many social media reactions suggest. Eligible instruments are limited to DTC-eligible securities, with Russell 1000 stocks at launch and certain ETFs tracking major indices included under the pilotโs eligibility criteria.
Tokenized shares must carry the same CUSIP and trading symbol as their traditional counterparts. They must also preserve materially the same rights and privileges as the conventional security class. This means investors holding tokenized versions of a stock receive the same economic exposure and protections as those holding the traditional form.
Nasdaq has confirmed that tokenized and traditional shares will trade on the same order book with the same execution priority. There is no separate matching engine or alternative venue for tokenized orders. Settlement remains on a T+1 basis through DTC infrastructure, not through blockchain-native finality.
The approval becomes operational only once DTC has established the required post-trade settlement services. Industry projections place the first token-settled trades toward the end of Q3 2026, assuming the infrastructure buildout stays on schedule.
Why this matters for tokenized securities and RWA markets
The SECโs decision is significant because it places tokenized equities inside the existing national market system rather than creating a separate crypto-native exemption. This structure preserves existing surveillance, reporting, and investor protection arrangements while introducing blockchain-based record-keeping at the settlement layer.
For the broader real-world asset tokenization narrative, the approval provides a concrete regulatory precedent. Previous SEC statements on digital asset classification have shaped market expectations, but this ruling goes further by authorizing a specific exchange mechanism for tokenized traditional securities.
Tal Cohen, a senior Nasdaq executive, has framed the initiative in measured terms. โTokenization has the potential to unlock the benefits of an always-on financial ecosystem,โ Cohen said in a March 9, 2026 statement, pointing to operational efficiency gains rather than speculative market expansion.
Matt Savarese, speaking about Nasdaqโs approach to the SEC approval process, emphasized continuity over disruption. โWeโre not looking at upending the system; we want everyone to come along for that ride,โ Savarese said, underscoring the incremental nature of the rollout.
The decision may also influence how institutional capital approaches compliant RWA infrastructure. Regulated exchanges offering tokenized versions of blue-chip equities within familiar market structures could lower the barrier for institutions that have avoided crypto-native tokenization platforms due to regulatory uncertainty. However, approval alone does not guarantee adoption, and broader macroeconomic conditions will continue to shape institutional risk appetite.
What traders, issuers, and market watchers should track next
The most immediate variable is DTCโs infrastructure readiness. Until the depository builds and tests the required post-trade settlement services, the approved rule change remains dormant. No timeline has been formally guaranteed by DTC.
Issuers of Russell 1000 securities and eligible ETFs will need to evaluate whether to participate in the pilot. The decision involves coordination with transfer agents, custodians, and broker-dealers, all of whom must adapt workflows to handle tokenized settlement within existing compliance frameworks.
Broker-dealers face their own implementation questions. Handling tokenized and traditional shares on the same order book simplifies execution, but back-office systems, client reporting, and custody arrangements may require updates to reflect the dual settlement model.
For the crypto and RWA sector, the key watchpoint is whether other exchanges follow Nasdaqโs lead. A successful pilot could prompt the NYSE or CBOE to file similar rule changes, expanding the scope of tokenized equity trading beyond a single venue. The SECโs willingness to approve this filing suggests a regulatory framework is taking shape, though each subsequent proposal will face its own review process.
Regulatory observers should also monitor whether the SEC extends or modifies the DTC pilotโs terms. The current approval is explicitly limited to the pilotโs duration and conditions. Any expansion to additional asset classes, smaller-cap securities, or alternative settlement timelines would require further rulemaking.
The approval does not mean retail investors can trade tokenized Nasdaq stocks immediately. The broader financial landscape will continue to evolve alongside these structural changes, but the operational reality depends on infrastructure deployment, participant readiness, and further regulatory clarity that has yet to arrive.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
