Tokenized Securities Trading by Nasdaq: status and timeline

Tokenized Securities Trading

Enable securities to settle on blockchain rails while preserving existing market structure and regulatory protections.

PilotStage 3 of 5

SEC pilot approved March 2026; tokenized trades settle on DTC rails alongside traditional shares.

Updated 19 Mar 2026Checked 11 Oct0 updates this week

Milestones

Next · Expand to additional securities classes

SEC approves tokenized trading proposal19 Mar 2026Complete.
Initial eligible securities (Russell 1000 stocks, major ETFs) launchQ3 2026Complete.
Expand to additional securities classesTarget 2027Not yet reached.

Most important updates

Upcoming

Q4 2026Broader rollout of tokenized-eligible securities (next)
2027Expand to additional securities classes
2027Other exchanges adopt tokenized trading frameworks

Current obstacles

Wallet and custody infrastructureMarket participants must deploy secure blockchain wallets and custody solutions for settlement.
Regulatory coordination across jurisdictionsOther markets and regulators must adopt compatible standards for global tokenized trading.

Physics limits

Settlement speed improvements limitedEven with blockchain, DTC processes maintain T+2 settlement timing, so speed gains depend on internal process changes, not technology.
Custody and regulatory overhead unchangedTokenization does not reduce compliance burdens; SEC and FINRA rules apply identically to tokenized and traditional shares.

How it works

3 parts

Trading

Same order book as traditional shares

Brokers enter tokenized orders with special notation; trades execute at identical prices alongside traditional settlements.

Settlement

Blockchain-backed DTC clearing

Nasdaq sends settlement instructions to DTC, which processes trades on blockchain rails while maintaining custody controls.

Fallback

Traditional settlement if needed

If blockchain settlement cannot complete due to wallet or technical issues, trades settle in standard format.

Spec sheet

Spec	Tokenized Securities Trading
Initial eligible index	Russell 1000^R (reported)
ETF eligibility	Major ETFs^R (reported)
Settlement infrastructure	Depository Trust Company (DTC)^R (reported)

^R reported by the company

Update log

2 updates

Thu 19 Mar

Major: SEC approves Nasdaq's pilot for tokenized Russell 1000 stocks and ETFs trading on main order bookRegulatorRegulatory

Sep 2025

Major: Nasdaq submits proposal to SEC for tokenized securities trading pilotPressRegulatory

About Nasdaq

The team behind Tokenized Securities Trading

Nasdaq

Stock exchange, tokenized securities, DTC

An American financial services corporation operating a stock exchange. In March 2026, the SEC approved Nasdaq's pilot to trade tokenized Russell 1000 stocks and ETFs on its main order book with DTC settlement.

Nasdaq operates the world's second-largest stock exchange by market cap, listing over 4,000 companies.
The exchange is the primary venue for technology and growth-focused companies globally.
SEC approval of tokenized trading marks a shift toward blockchain settlement in capital markets.

nasdaq.com (opens nasdaq.com)Company profile →

Founded: 197155 yrs
Headquarters: United States
Status: Public
Valuation: $55Bmarket capJun 2026
Staff: ~9,613Jan 2025
Works in: CryptoStablecoins & tokenization
Coverage: 1 program · 2 updateslatest 19 Mar 2026checked 11 Oct
Partners: Depository Trust Company (opens dtcc.com)Kraken (opens kraken.com)
People: Adena Friedman (opens nasdaq.com)Chair and CEO

Spec

Tokenized Securities Trading

Initial eligible index

Russell 1000^R (reported)

ETF eligibility

Major ETFs^R (reported)

Settlement infrastructure

Depository Trust Company (DTC)^R (reported)