SEC approves Nasdaq's rule change enabling tokenized settlement of securities via DTC pilot, starting with Russell 1000 stocks and major index ETFs.
Regulation & Gov ·
The SEC has approved Nasdaq's rule change to enable trading of tokenized securities on its regulated exchange infrastructure, marking a significant step toward bringing market infrastructure onchain. The approval also covers a pilot program for tokenized settlement of securities through the Depository Trust Company, initially covering Russell 1000 stocks and major index ETFs.
Nasdaq has simultaneously partnered with Kraken's parent company Payward to build infrastructure connecting tokenized equities with decentralized finance networks. The two entities are working to launch tokenized stocks in 2027, with the platform expected to modernize corporate actions and shareholder engagement through blockchain-based infrastructure.
The regulatory pathway forward remains partially undefined: while the SEC approval establishes a framework for trading and settlement pilots on traditional exchange infrastructure, the timeline and scope of broader tokenized securities rollout across traditional markets, the specific mechanics of DeFi integration, and regulatory treatment of cross-chain settlement remain to be clarified as pilots progress.