Key Takeaways
- Nasdaq wins SEC approval to trade tokenized stocks and ETFs natively on its exchange.
- Tokenized versions offer the same rights, faster settlement, and 24/7 potential access.
- Tokenized real-world assets surged 266% in 2025, equities up nearly 2,878%.
In a landmark move that bridges traditional finance and blockchain technology, the U.S. Securities and Exchange Commission (SEC) has approved Nasdaq’s proposal to trade and settle certain securities in tokenized form.
The decision green-lights the world’s second-largest stock exchange to integrate blockchain-based digital tokens directly into its core equity markets for the first time.
What Will Be Tradeable on Nasdaq’s Tokenized Platform
Nasdaq’s rule change, originally filed in September 2025 and refined over seven months, allows listed stocks and exchange-traded products (ETPs) to exist in two parallel versions: the familiar paper-trail equivalent and a blockchain-native token that represents the exact same ownership rights.
Settlement will run through the Depository Trust Company’s (DTC) regulated pilot program.
This will ensure full compliance with federal securities laws while unlocking the speed and transparency of distributed ledger technology.
Initially, the pilot limits tokenized trading to high-volume, liquid assets to minimize risk and ensure smooth integration.
Eligible securities include:
- All stocks in the Russell 1000 Index, covering America’s largest and most actively traded companies — think Apple, Amazon, and Nvidia.
- ETFs tracking major benchmarks such as the S&P 500 and Nasdaq-100 indices.
These tokenized shares will trade on the same order book as their traditional counterparts.
They will share identical CUSIP numbers, trading symbols, and shareholder rights (dividends, voting, liquidation).
Investors and member firms can opt for tokenized settlement on a trade-by-trade basis without disrupting existing market mechanics.
The timing couldn’t be better, as tokenized funds and equities have exploded in popularity throughout 2025.
What This Means for Traditional Markets
For decades, U.S. equity markets have relied on outdated infrastructure.
This includes T+1 settlement cycles, compartmentalized systems, and limited access outside regular trading hours.
Nasdaq’s tokenized securities pilot alters the equation.
By integrating blockchain directly into the National Market System, the exchange provides institutional and regular investors with faster, cheaper, and more efficient trading.
Settlement can move rapidly beyond the current T+1 norm to atomic, near-real-time finality.
Fractional shares, which were already popular, are now even easier to handle on-chain.
Global participants have 24-hour access without leaving regulated U.S. markets, and increased transparency decreases counterparty risk and fraud.
Nasdaq’s collaboration with Kraken’s xStocks and Europe’s Seturion signals a broader ecosystem in which traditional equities flow seamlessly between permissioned exchanges and DeFi networks.
Rival NYSE is already developing its own tokenized platform.
Broker-dealers, custodians, and asset managers now have a clear, SEC-approved path to tokenizing client holdings without creating infrastructure from scratch.
With Nasdaq leading the charge, tokenized securities are no longer a niche crypto story — they’re becoming mainstream market infrastructure.
Expect rapid expansion: more indices, international stocks, and eventually bonds and private assets joining the platform.
Why This Approval Is a Major Breakthrough
This is the first time a major U.S. stock exchange has received regulatory clearance to natively list and trade tokenized equities under the same rules as traditional stocks.
Previous tokenization efforts lived mostly offshore or in private pilots.
Nasdaq’s move brings the innovation squarely inside the world’s most liquid, regulated market, complete with DTC backing and full investor protections.
According to market data, the total value of RWAs surged 266% in 2025, reaching over $24 billion by February 2026.
Tokenized U.S. Treasuries alone hit $9.6 billion, while money-market funds and private-credit vehicles led the charge.
BlackRock’s BUIDL fund, Franklin Templeton’s OnChain offerings, and JPMorgan’s tokenized private-equity products became household names among institutions seeking yield with blockchain efficiency.
Tokenized equities specifically saw even more dramatic growth: the market ballooned nearly 2,878% year-over-year, climbing from just $32 million to roughly $963 million by January 2026, approaching the $1 billion milestone.
Platforms like Ondo Global Markets captured more than half the share, with xStocks and Securitize rounding out the leaders.
Key drivers included new SEC guidance on custody, the DTCC’s tokenization pilot, and institutional demand for “always-on” access to traditional assets.
Retail and high-net-worth investors embraced tokenized funds for their liquidity and fractional entry points, while institutions used them as collateral in DeFi protocols and for 24/7 portfolio management.
The quadrupled RWA market size by late 2025 proved the model works, and Nasdaq’s approval now supercharges the next phase.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
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