Nasdaq Gets SEC Nod for Blockchain-Based Securities Trading

The US Securities and Exchange Commission (SEC) has given its green light to Nasdaq's plan to allow certain securities to be traded in tokenized form, paving the way for the integration of blockchain technology into US equity markets. The approval enables Nasdaq to test blockchain-based versions of stocks that trade and settle like traditional shares.

The SEC's nod is a significant milestone for the industry, as it opens up new possibilities for trading and settlement. Tokenized shares will trade alongside traditional shares on the same order book and at the same price, carrying identical rights and using the same ticker and CUSIP identification number.