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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 SEC, Nasdaq’s approved pilot lets eligible participants use tokenized settlement through a DTC program while preserving a single order book, identical shareholder rights, and the existing market structure.

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 approved Nasdaq’s rule change allowing certain securities to be settled in tokenized form through a DTC pilot program. Eligible participants can elect tokenized settlement, while tokenized and traditional shares will use the same order book, execution priority, and shareholder rights. The securities also retain the same price, ticker, and CUSIP, and the SEC said the pilot is designed to explore onchain settlement without changing existing market structure, surveillance, reporting, or settlement timelines.

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.
  • CUSIP: A standardized identification number assigned to a U.S. security for trading, clearing, and settlement purposes.
  • Onchain settlement: A settlement method in which ownership transfer and related records are processed on a blockchain network.