The U.S. Securities and Exchange Commission granted formal approval Wednesday for Nasdaq to trade tokenized securities in a new pilot program. The initiative covers Russell 1000 stocks and select index ETFs, maintaining identical rights and symbols to traditional shares.
While assets reside on a blockchain, settlement remains within existing market rails through the Depository Trust Company. Trades revert to standard settlement if blockchain compatibility fails.
Industry groups including SIFMA and Cboe raised concerns during the review regarding oversight and issuer control. However, regulators maintain that tokenized assets remain securities first, technology second.
Market executives suggest this move enables programmable equities and faster settlement cycles. Institutional investors are now monitoring liquidity development across both traditional and tokenized formats.