The post SEC Approves Nasdaq Rule To Trade Tokenized Securities, Paving Way For Blockchain Integration appeared on BitcoinEthereumNews.com.

The U.S. Securities and Exchange Commission (SEC) has approved a Nasdaq rule change that allows certain securities to be traded in tokenized form, a move that integrates blockchain technology into traditional stock market infrastructure. The approval, issued Wednesday, is part of a broader effort to explore digital representations of regulated assets while maintaining investor protections and market stability. Under the new framework, eligible securities — including stocks in the Russell 1000 Index and exchange-traded funds (ETFs) tracking major benchmarks such as the S&P 500  — can be represented and traded as tokenized assets on Nasdaq.  These tokenized versions are fully interchangeable with traditional shares, sharing the same ticker symbols, CUSIP numbers, and shareholder rights.  Investors holding tokenized securities retain standard protections, including voting rights, dividend access, and claims on residual assets, ensuring consistency with existing securities laws. The system operates as a pilot program through the Depository Trust Company (DTC), which handles post-trade settlement and tokenization. Market participants can choose to settle trades in tokenized form via a designated instruction at order entry.  Earlier this month, Nasdaq partnered with Payward, Kraken’s parent company, to enable the trading of tokenized stocks between traditional markets and blockchain networks using Payward’s xStocks platform.  A nod to Bitcoin This move won’t directly affect Bitcoin’s price or network, but it’s a nod to a growing regulatory comfort with blockchain-based assets, which could indirectly boost institutional interest in digital currencies.  By integrating tokenized securities into mainstream markets, it may pave the way for broader adoption of crypto infrastructure and financial products that interact with Bitcoin. If tokenization requirements are not met, trades default to traditional settlement. Nasdaq confirmed that its core trading infrastructure — including order types, routing strategies, trading sessions, and market data feeds — remains unchanged, ensuring tokenized securities are fully integrated into existing…

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Filed under: News - @ March 18, 2026 11:23 pm