Nasdaq receives SEC nod for trading in tokenised securities

[BENGALURU] The US Securities and Exchange Commission (SEC) on Wednesday (Mar 18) approved a Nasdaq proposal to allow certain stocks to be traded and settled in tokenised form, according to a regulatory filing, marking a step towards integrating blockchain-based settlements into mainstream equity markets.

Exchange operators have been doubling down on their push to capitalise on the boom in tokenisation as regulations for cryptocurrencies ease under the Trump administration.

The move would allow investors to trade high-volume stocks as traditional shares or as blockchain-based digital tokens to be settled through the Depository Trust Company.

Nasdaq had filed a proposal with the SEC in September to amend its rules to allow listed stocks and exchange-traded products to trade on its main market in either traditional or tokenised form.

Securities eligible for tokenised trading would initially be limited to stocks in the Russell 1000 Index, as well as exchange-traded funds tracking major benchmarks such as the S&P 500 and the Nasdaq 100, the filing said.

Rival Intercontinental Exchange also said earlier this year that it had developed a platform for trading and on-chain settlement of tokenised securities, for which the NYSE parent is seeking regulatory approvals. REUTERS