The U.S. Securities and Exchange Commission has formally approved a Nasdaq proposal allowing certain stocks to be traded in tokenized form. The plan initially covers Russell 1000 stocks and select index ETFs, with tokenized shares required to mirror their traditional counterparts in rights, symbols, and trading priority.
Participating brokers may designate an order for tokenized settlement at entry, after which Nasdaq forwards the instruction to the Depository Trust Company. If the broker, security, or wallet is ineligible, the trade defaults to conventional settlement.
Steven Wu, chief operating officer at Clearpool, said the approval makes listed equities more programmable and opens the door to broader financial use cases. Samar Sen of Talos noted institutions will monitor how tokenized securities integrate with post-trade infrastructure and whether liquidity develops consistently across both formats.
Originally reported by Decrypt.
