Nasdaq Proposes Tokenized Securities Trading on Main Market by 2026
Nasdaq has formally submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to enable the trading of tokenized securities (traditional financial instruments represented as digital tokens on blockchain) on its primary exchange platform.
If approved, this initiative would mark a historic milestone: the first time a major U.S. stock exchange integrates tokenized assets directly into the national market system. This would allow listed shares to coexist in both conventional and blockchain-based formats.
Key Highlights
Regulatory Parity: Nasdaq emphasized that tokenized securities must retain identical material rights as their traditional equivalents to qualify under the same regulatory framework. Otherwise, they would be treated as separate financial instruments.
Timeline & Infrastructure: The initial rollout is tentatively scheduled for Q3 2026, contingent on regulatory alignment and technical readiness, including coordination with the Depository Trust Company (DTC).
Broader Context: This proposal aligns with a growing trend toward asset tokenization, bolstered by recent signals from U.S. regulators showing increased openness to blockchain integration in traditional finance.
Implications
For Investors: Tokenization could enhance market accessibility, improve liquidity, and increase transparency in select asset classes.
For Institutions: Issuers and financial entities must ensure that tokenized versions uphold legal rights, governance structures, and compliance standards.
For the Ecosystem: If successful, this move could serve as a pivotal bridge between traditional finance (TradFi) and decentralized finance (DeFi), provided that legal, operational, and regulatory hurdles are effectively addressed.
