The U.S. Securities and Exchange Commission has approved changes to Nasdaq’s rules, allowing the exchange to trade tokenized versions of stocks and ETFs.
The model is based on the idea that tokenized securities exist alongside traditional ones and are cleared through the DTC. Participants in the pilot will be able, when placing an order, to choose the settlement method — either traditional or on-chain.
How the Model Works
Tokenized stocks will trade alongside regular ones — in the same order book, under the same ticker, and with identical rights for holders. The exchange will not distinguish between them in market data, and trades will be executed in the same sequence as for traditional securities.
At launch, the lineup will include stocks from the Russell 1000 index, as well as exchange-traded funds tied to major indices such as the S&P 500 and Nasdaq-100. The exchange will update the list of available instruments separately.
Tokenization takes place after the trade. A participant simply indicates when placing an order that they want to receive a token. If the system cannot process this — for example, due to an unsupported network or wallet — the trade is completed as a standard one, without tokenization.
How the Market Reacted
During discussions, some market participants pointed to the risk of price divergence between tokenized and traditional stocks, as well as questions around holder rights. In the final version of the rules, full interchangeability and identical rights are закреплены as a key condition for admission to trading.
Nasdaq also emphasizes that it is exploring other approaches to tokenization, but any alternative models will require separate approval from the SEC.