The U.S. Securities and Exchange Commission (SEC) has approved a Nasdaq proposal to allow certain stocks to be traded and settled in tokenized form. This approval marks a significant step toward integrating blockchain-based settlements into mainstream equity markets.
Initially, securities eligible for tokenized trading will be limited to stocks in the Russell 1000 Index and ETFs tracking major benchmarks like the S&P 500 and Nasdaq 100. Nasdaq filed the proposal with the SEC in September, aiming to offer both traditional and tokenized trading options.
This move comes as part of a broader trend among exchange operators to capitalize on the growing interest in tokenization, particularly as regulations for cryptocurrencies become more favorable.