Nasdaq Seeks SEC Approval to List Tokenized Securities by 2026

Nasdaq has filed a proposal with the U.S. Securities and Exchange Commission (SEC) to amend its rules to allow trading of tokenized securities. The change would allow tokenized stocks and ETFs alongside traditional ones on its main market. 

Notably, this filing comes days after the SEC released its rulemaking agenda. It included possible rule changes to permit crypto trading on national exchanges and alternative trading systems. 

Nasdaq Seeks Regulatory Approval

This marks the first time a major U.S. exchange has proposed trading tokenized versions of listed securities on the national market system. It aims to integrate distributed-ledger settlement into the framework of regulated exchanges. According to Nasdaq, markets can adopt tokenization while still preserving the benefits and investor protections of the national market system. 

“Wholesale exemptions from the national market system and related protections are neither necessary to achieve the goal of accommodating tokenization, nor are they in investors’ best interests,” Nasdaq said.

Moreover, Nasdaq stated that token-settled trades could start by late Q3 2026, provided the necessary infrastructure, such as the Depository Trust Company (DTC), is in place. 

However, critics like SEC Commissioner Hester Peirce warned about the frenzy surrounding tokenization. She cautioned that it could create new systemic risks, especially without strict regulation. Nasdaq addressed this concern, stating that its latest proposal to trade tokenized securities would exist within that context. 

With the latest move, Nasdaq is poised to open the door for wider blockchain adoption. Investors would gain access to the products within regulated markets.

Tokenization Gains Traction

The proposal comes at a moment of rising industry and regulatory momentum for tokenization. While critics share their reservations, crypto industry advocates argue that tokenization can boost liquidity in financial markets. Policymakers and market participants have been working to reconcile blockchain rails with U.S. securities laws and investor-protection rules.

Crypto exchange Coinbase has sought SEC approval to offer tokenized equities. Additionally, global banks such as Bank of America and Citi have indicated interest in exploring tokenized assets, including stablecoins.

Overall, Nasdaq’s proposal is a significant signal that tokenization is moving from experimentation toward possible mainstream adoption in U.S. capital markets. If approved and implemented, it can speed up settlement of trades, connecting global digital markets and DeFi systems.

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