The US Securities and Exchange Commission (SEC) has approved a Nasdaq proposal to allow certain securities to be traded and settled in tokenised form, according to the regulator’s published filing.
The model introduces blockchain-based versions of equities into the existing market structure rather than creating a separate venue. Tokenised shares will trade alongside conventional securities on the same order books, carrying identical tickers, prices, CUSIP identifiers and investor rights.
Optional blockchain settlement
Under the framework, eligible Nasdaq participants can opt to settle transactions either through the traditional book-entry system or via blockchain-based tokens.
Clearing and settlement of tokenised trades will be handled through a pilot operated by the Depository Trust Company (DTC), linking the new process to established post-trade infrastructure.
No changes to controls or timelines
According to the SEC filing, the proposed structure does not alter core market safeguards. Surveillance mechanisms, data reporting requirements and settlement timelines will remain in place.
The regulator states that the model meets existing investor protection standards despite the introduction of token-based settlement.
The approval follows Nasdaq’s filing in September and comes amid increasing activity around tokenisation of traditional financial instruments.
