Nasdaq is pushing ahead with one of its most ambitious modernization efforts in years: a regulated system for trading tokenized versions of publicly listed stocks.
According to digital assets head Matt Savarese, securing SEC approval has become a top priority, and the exchange is prepared to move “as fast as we can” to bring the proposal to market.
A Regulated Pathway for "Stock Tokens"
The framework, formally introduced in a September 2025 SEC filing, would allow investors to trade on-chain representations of traditional equities directly on the Nasdaq platform. These “stock tokens” would mirror conventional shares in every respect: same CUSIP, same voting rights, same dividend entitlements. Under the dual-settlement model, each trade could be processed either through the traditional system or on-chain, depending on investor preference.
A key component of the plan involves the Depository Trust Company (DTC). Under Nasdaq’s proposal, DTC could oversee the conversion of traditional shares into tokenized units, ensuring that the blockchain layer stays fully synchronized with the established settlement infrastructure.
If the SEC signs off and the DTC finalizes the required backend systems, Nasdaq believes the model could launch as early as Q3 2026.
Tokenization Without Disruption
Rather than bypass regulators or challenge existing market structures, a frequent criticism of early blockchain experiments, Nasdaq is positioning tokenization as an upgrade to the traditional system, not a replacement. The exchange argues that integrating blockchain inside a regulated environment preserves investor protections while unlocking long-term efficiency gains.
The potential benefits outlined in the filing include:
- •Faster or near-instant settlement
- •Greater transparency through on-chain auditability
- •Fractional ownership of high-value shares
- •Pathways toward 24/7 trading availability
- •Reduced operational risk via automated reconciliation
By keeping these “stock tokens” fungible with normal shares, Nasdaq aims to avoid the liquidity fragmentation and manipulation risks that occur on unregulated tokenized-assets platforms.
SEC Review Now Underway
Regulators are currently evaluating public comments and industry feedback as part of their decision process. While the SEC has acted cautiously toward blockchain-based securities in the past, Nasdaq’s proposal presents a different model: one that keeps every component inside the existing regulatory perimeter.
If approved, the initiative could mark the most significant step yet toward mainstream tokenization in U.S. markets, setting a precedent for other major exchanges and clearing institutions.