SEC review puts Nasdaq tokenized stocks to first real test at DTCC’s gate

SEC opens formal review into Nasdaq’s bid to list tokenized stocks, testing how blockchain shares can coexist with DTCC‑cleared equities.​

The U.S. Securities and Exchange Commission has initiated a formal review of Nasdaq’s proposal to list and trade tokenized securities, according to regulatory filings, placing blockchain-based shares under regulatory scrutiny that could shape the future of digital asset integration in traditional markets.

Nasdaq has requested approval to list and trade securities in tokenized form, triggering a consultation process that examines regulatory, technical, and policy considerations, the SEC filing showed. The review will determine whether tokenized shares can operate alongside traditional equities while maintaining existing market safeguards.

SEC reviews Nasdaq

Under the proposal, tokenized stocks and exchange-traded products would trade in parallel with conventional shares on the same order book, carrying identical shareholder rights. Clearing and settlement would continue through the Depository Trust and Clearing Corporation, while blockchain technology would be deployed to enhance operational efficiency, according to the filing.

The SEC has sought public feedback on the proposed rule change to assess how digital representations of stocks might fit within existing market structures. The consultation represents the beginning of an evaluation process rather than a final determination, regulators indicated.

If approved, the framework would allow blockchain-based shares to trade alongside regular stocks without requiring separate systems or accounts for investors. Settlement would remain dependent on DTCC infrastructure, ensuring continuity with current market processes.

The proposal has generated divided responses from market participants. Industry groups have expressed support, citing potential efficiency gains and modernization of post-trade processes. The U.S. Commodity Futures Trading Commission recently approved a pilot program permitting tokenized assets to serve as collateral, suggesting growing regulatory acceptance of blockchain-based financial instruments.

However, Ondo Finance and Cboe Global Markets have opposed immediate approval, according to public comments submitted to the SEC. These firms have called for the regulator to delay action until the DTCC provides clearer guidance on settlement procedures for tokenized trades, noting that all such transactions would continue to rely on DTCC infrastructure.

The review reflects increasing interest in tokenization across financial markets while highlighting regulatory focus on legal certainty, settlement integrity, and investor protection. Any decision is expected to influence the pace of blockchain technology adoption within mainstream equity trading, market observers said.