"Under the new framework, eligible securities - including stocks in the Russell 1000 Index and exchange-traded funds (ETFs) tracking major benchmarks such as the S&P 500 - can be represented and traded as tokenized assets on Nasdaq. These tokenized versions are fully interchangeable with traditional shares, sharing the same ticker symbols, CUSIP numbers, and shareholder rights."
"Investors holding tokenized securities retain standard protections, including voting rights, dividend access, and claims on residual assets, ensuring consistency with existing securities laws. The system operates as a pilot program through the Depository Trust Company (DTC), which handles post-trade settlement and tokenization."
"By integrating tokenized securities into mainstream markets, it may pave the way for broader adoption of crypto infrastructure and financial products that interact with Bitcoin. This move won't directly affect Bitcoin's price or network, but it's a nod to a growing regulatory comfort with blockchain-based assets, which could indirectly boost institutional interest in digital currencies."
The SEC has approved a Nasdaq rule change permitting certain securities to be traded in tokenized form on blockchain technology. Eligible securities include Russell 1000 Index stocks and ETFs tracking benchmarks like the S&P 500. Tokenized versions maintain full interchangeability with traditional shares, sharing identical ticker symbols, CUSIP numbers, and shareholder rights. Investors retain standard protections including voting rights, dividend access, and asset claims. The system operates as a pilot program through the Depository Trust Company, which manages post-trade settlement and tokenization. Market participants can elect tokenized settlement at order entry, with trades defaulting to traditional settlement if tokenization requirements aren't met. Nasdaq recently partnered with Payward to enable tokenized stock trading between traditional and blockchain networks.
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