The U.S. Securities and Exchange Commission (SEC) has given the green light for Nasdaq to introduce tokenized trading of securities. The approval covers Russell 1000 Index constituents — the largest U.S. public companies by market cap — and benchmark ETFs tracking the S&P 500 and Nasdaq 100. Nasdaq first filed for this transformative change in September 2025, aiming to merge traditional and blockchain-based settlement on its primary platform.
Moving forward, Nasdaq investors can choose between buying equity as standard shares or as blockchain-based digital tokens, both subject to existing securities laws. Regardless of format, settlement for tokenized trades will be handled by the Depository Trust Company (DTC), the long-standing institution processing nearly all U.S. stock market transactions.
ICE Races Ahead with On-Chain Settlement
Intercontinental Exchange (ICE), owner of the New York Stock Exchange, is rapidly advancing on a similar front. After announcing in early 2026 that it had built an on-chain settlement platform for tokenized securities, ICE is now seeking regulatory approvals to officially launch the system. As a global exchange and clearing house operator, ICE directly competes with Nasdaq in this emerging sector.
The push toward tokenization is accelerated by both shifting U.S. regulatory landscape and pressure among financial services to streamline post-trade processes. Policymakers including President Donald Trump and SEC Chair Paul Atkins have emphasized digital innovation to ensure American leadership in crypto infrastructure. SEC Commissioner Hester Peirce stressed: "Tokenized securities are still securities", and regulatory standards will apply regardless of settlement technology.
Nasdaq Partners with Kraken Operator
Nasdaq has also deepened its blockchain efforts via a partnership with Payward, the company behind Kraken, to develop an "Equities Transformation Gateway." The initiative aims to further integrate blockchain solutions into traditional equity trading, reflecting a broader strategic trend among legacy exchanges.
According to the timeline in regulatory documents, the first token-settled trades are expected by the end of Q3 2026. This window gives market participants and institutional investors time to adapt infrastructure and compliance measures.
With multiple exchange groups pursuing on-chain solutions and regulatory acceptance now established, industry observers view the SEC approval as a turning point for mainstream tokenization. Once live, clients may increasingly see tokenized equity as a viable alternative to conventional settlement.