Nasdaq has received formal approval from the U.S. Securities and Exchange Commission to launch a pilot program for tokenized versions of select Russell 1000 stocks and index ETFs.
The tokenized securities will retain identical rights, tickers, and trading priority as their conventional counterparts. Nasdaq will embed tokenization within its current systems-not create a parallel blockchain market. Trades designated for tokenized settlement will route to the Depository Trust Company (DTC); failures trigger automatic fallback to traditional settlement.
Industry groups raised concerns during review: SIFMA and Cboe questioned DTC’s operational clarity; Digital Chamber urged technology neutrality and issuer inclusion; Better Markets opposed the pilot outright, citing pricing risks and surveillance gaps.
The approval signals institutional validation of tokenization-and a potential path toward faster, programmable settlement in U.S. equities markets.