The SEC’s approval lets Nasdaq test blockchain-based versions of stocks that trade and settle like traditional shares. Mar 18, 2026, 8:44 p.m. The U.S. Securities and Exchange Commission (SEC) approved on Wednesday Nasdaq’s proposal to allow certain securities to trade in tokenized form, a significant milestone to integrate blockchain tech into U.S. equity markets. Nasdaq's tokenization plan ties into a pilot run by the Depository Trust Company (DTC), which will handle clearing and settlement of tokenized trades. Nasdaq filed for regulatory permission in September, Under the framework, eligible Nasdaq participants can choose to have trades settled as blockchain-based tokens rather than through standard book-entry systems. Tokenized shares will trade alongside traditional shares on the same order book and at the same price. They will carry identical rights, use the same ticker and CUSIP (identification number) and follow existing market rules. The SEC said the structure meets investor protection standards, noting that surveillance, data reporting and settlement timelines remain intact. The move comes as tokenization of traditional assets like stocks, bonds and funds have become a fast-growing sector in the digital asset space. The process allows near-instant, around-the-clock trading with tokens tied to real-world assets. The trend has captivated major U.S. exchanges. Nasdaq said last week that it is developing a framework that would allow publicly listed companies to issue blockchain-based versions of their shares. It has teamed up with crypto exchange Kraken to distribute tokenized stocks globally. Meanwhile, Intercontinental Exchange (ICE), the owner of the NYSE, invested in crypto exchange OKX with plans to launch new tokenized stocks and crypto futures. Read more: Here is why Nasdaq and owner of NYSE are putting the $126 trillion equity market on blockchain More For You Kalshi co-founder fights back against Arizona’s ‘overstep’ in what a lawyer calls a federal-state turf war 2 hours ago Arizona has filed 20 criminal counts against Kalshi, a prediction market platform, accusing it of operating an illegal gambling business and offering election wagering in the state. What to know: Arizona has filed 20 criminal counts against Kalshi, a prediction market platform, accusing it of operating an illegal gambling business and offering election wagering in the state. Kalshi's co-founder called the charges a "total overstep", arguing that Arizona is trying to challenge federal regulation of the platform, which is overseen by the CFTC. The case is part of a broader national fight between states and federally regulated prediction markets, with implications for the applicability of federal law versus state regulations. Read full story