Nasdaq just got the green light from the U.S. SEC to run a tokenized equities pilot, letting select participants trade stocks in digital token form alongside regular shares.
Here’s what’s happening:
- The pilot covers stocks in the Russell 1000 and major ETFs tied to the S&P 500 and Nasdaq 100.
- Tokenized shares have the same rights and pricing as standard shares.
- Eligible participants can choose to trade in traditional or tokenized form on the same platform.
Tokenization basically turns real-world assets into digital tokens on blockchain, which can make settlement faster and improve processes like proxy voting, all while keeping investor protections in place.
Nasdaq is building this with Kraken and Backed, giving companies a way to create tokenized shares. The SEC reviewed the plan carefully to ensure market surveillance and price accuracy are safeguarded.
This move is part of a broader trend: the SEC has allowed the DTCC to explore tokenization, and the NYSE’s parent, Intercontinental Exchange, is backing a similar project with OKX.
In short: Nasdaq is testing a future where stocks can exist both digitally and traditionally, combining blockchain efficiency with standard market rules.
