Nasdaq Proposes Rule Change for Tokenized Securities Trading

Nasdaq has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) seeking approval for trading and settlement of tokenized versions of Nasdaq-listed equities and exchange-traded products (ETPs). According to NS3.AI, these tokenized securities would retain the same rights and CUSIP as traditional shares and would be traded on the same order book. The settlement process could optionally utilize blockchain technology through the DTC's distributed ledger platform. The proposal includes measures to prevent liquidity fragmentation and aims to achieve near-instant settlement, known as T+0. If the SEC approves the rule change, Nasdaq anticipates a potential launch of this initiative in late Q3 2026.