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U.S. SEC Approves Nasdaq Rule Change for Tokenized Settlement Pilot

U.S. SEC Approves Nasdaq Rule Change for Tokenized Settlement Pilot

According to the report, the SEC approved Nasdaq’s framework for tokenized stocks and ETFs, enabling blockchain-based issuance and potential 24/7 access while keeping trading and settlement within DTCC-linked, permissioned market infrastructure.

Fact Check
The claim is supported by multiple legal and regulatory reports. The SEC issued a No-Action Letter to the Depository Trust Company (DTC) in December 2025, which effectively authorized the 'DTC tokenization pilot' mentioned in the claim (Sidley, Dechert). Furthermore, legal analysis from Debevoise & Plimpton indicates that the SEC approved Nasdaq's related rule changes on December 19, 2025, to facilitate the trading of these tokenized securities. While the Federal Register continued to process procedural notices into early 2026, the substantive regulatory approval for the pilot and Nasdaq's participation in it is well-documented.
Summary

The U.S. Securities and Exchange Commission’s approval of Nasdaq’s tokenized securities initiative now covers a framework for certain tokenized stocks and ETFs to trade alongside traditional shares while being issued and recorded on blockchain rails. Clearing and settlement will continue through DTCC infrastructure, and Nasdaq said it will use Kraken to distribute stock tokens globally. The report says supporters view the move as a step toward faster settlement, fractionalized ownership, and eventually 24/7 global access to U.S. equities, while critics argue the model remains permissioned and intermediary-driven because brokers and centralized post-trade systems still control execution and settlement. The existing structure reported earlier remains intact, with tokenized and traditional shares sharing the same order book, execution priority, ticker, CUSIP, price, and shareholder rights.

Terms & Concepts
  • Tokenized settlement: The completion of securities trades using blockchain-based digital representations within the post-trade process instead of relying only on traditional systems.
  • DTCC: The Depository Trust & Clearing Corporation, the main U.S. post-trade infrastructure provider for clearing and settling securities transactions.
  • Tokenized stocks: Blockchain-based digital representations of shares that mirror traditional equity ownership while operating within a regulated issuance and settlement framework.