The U.S. Securities and Exchange Commission formally approved on March 18 a Nasdaq rule change allowing eligible stocks to be traded and settled as blockchain-based tokens — embedding digital asset infrastructure directly into the architecture of American equity markets.

What the Approval Covers

Initial eligibility is limited to Russell 1000 Index constituents and major index ETFs, including those tracking the S&P 500 and Nasdaq 100. Tokenized shares will trade on the same order book as their traditional equivalents at the same price, with identical rights, ticker symbols, and CUSIP identification numbers. Settlement will continue through the Depository Trust Company (DTC) using existing clearing rails rather than a separate on-chain mechanism.

Nasdaq first filed the rule change in September 2025, arguing that tokenized securities could coexist with traditional shares provided the underlying infrastructure stayed intact. The SEC's ruling validated that framework but remained technology-agnostic — it neither endorsed nor commented on any specific blockchain protocol, framing the decision as a market structure matter.

A Market in Motion

Nasdaq is not moving alone. Intercontinental Exchange, the parent company of the NYSE, recently invested in OKX with plans to launch tokenized stocks and crypto futures. Nasdaq itself announced last week a distribution partnership with Kraken to bring tokenized equities to global markets.

The approval matters because it formally recognizes tokenized instruments within existing regulatory perimeters, without requiring new legislation or a separate regulatory regime. For Web3, it signals that blockchain-based versions of traditional assets are no longer a future concept — they are a permitted structure inside one of the world's largest exchanges.