Overview

• Nasdaq’s proposal would allow listed equities and exchange-traded products to trade in traditional or tokenized form on the same order book with identical execution priority.
• Only tokens that convey the same shareholder rights as the underlying securities, including voting and liquidation rights, would be treated as equivalent to traditional shares.
• Participants could select a tokenization flag at order entry, with clearing and settlement routed through The Depository Trust Company once its systems support token settlement.
• Nasdaq estimates the first token-settled trades could occur by late Q3 2026, subject to SEC approval and DTC readiness.
• The filing keeps tokenization within the national market system and addresses concerns over offshore offerings that mimic U.S. stocks without full investor protections, as crypto platforms expand such products.