The SEC Approves Nasdaq's Security Tokenization Trading: Stocks Can Trade on-chain

BlockBeats News, March 19th, the U.S. Securities and Exchange Commission officially approved a Nasdaq rule amendment, allowing the trading of securities on its exchange in "tokenized form," marking a key step for the traditional capital market towards blockchain.

According to the plan, eligible stocks and ETFs can undergo clearing and settlement in the existing trading system in the form of on-chain tokens, sharing the same order book, trading priority, and identical shareholder rights as traditional stocks.

This pilot is based on the tokenization plan of the Depository Trust & Clearing Corporation (DTC). Investors can choose whether to settle in token form when placing orders, and the system will conduct on-chain processing after the trade is completed.

Nasdaq stated that, apart from the settlement method, trading rules, market data, fee structure, and regulatory monitoring remain unchanged, and tokenized securities are fully integrated into the current securities law framework.

The industry believes that this move signifies the formal entry of "U.S. stocks on the chain" into the regulatory implementation phase, potentially reshaping the securities issuance, trading, and settlement system.