Overview

• Nasdaq submitted a rule-change proposal to the SEC to permit listed stocks and ETPs to trade in either traditional form or tokenized form on the same order book with identical execution priority.
• Orders designated for tokenized settlement would be flagged at entry and routed for clearing and settlement through The Depository Trust Company, according to the filing.
• Tokenized instruments must convey the same material rights as their traditional counterparts, including voting, dividends and liquidation rights, or they will be treated as distinct products.
• Nasdaq said first token‑settled trades could arrive by late Q3 2026, contingent on SEC approval and DTC readiness, with a public comment process ahead.
• The move follows growing tokenization efforts by firms like Robinhood, Coinbase and major banks, as global exchange groups warn that some offshore tokenized U.S. stocks do not provide actual share ownership and could mislead investors.