Visual Guide to the recent SEC Report: Why Allow Nasdaq to Trade Tokenized Stocks?

On March 19, the U.S. Securities and Exchange Commission (SEC) officially approved a Nasdaq rule change this morning—greenlighting the trading of tokenized securities on the exchange, a critical step for traditional capital markets toward blockchain technology. Under the plan, eligible stocks and ETFs will clear and settle via the existing trading system as on-chain tokens, with the same order book, trading priority, and shareholder rights as traditional securities. The pilot is tied to the Depository Trust & Clearing Corporation’s (DTCC) tokenization initiative: investors may opt for tokenized settlement when placing orders, and the system will handle on-chain processing post-trade. Nasdaq noted that beyond the settlement method, trading rules, market data, fee structures, and regulatory oversight will remain unchanged. Tokenized securities will also be fully integrated into existing U.S. securities law frameworks. For additional details, see the accompanying infographic.