Nasdaq's Tokenized Securities Framework Receives SEC Approval

The US Securities and Exchange Commission (SEC) has given its approval to Nasdaq's tokenized securities framework, marking a significant step towards the integration of blockchain technology into traditional equity markets. The approved framework will allow certain stocks and ETFs to be issued and settled as blockchain-based tokens, which can then be traded alongside traditional shares.

According to industry insiders, this move is not a sweeping overhaul of market operations but rather focuses on post-trade plumbing. It aims to bring the benefits of blockchain technology into equities while preserving the existing intermediaries and market structure.

The Depository Trust & Clearing Corporation (DTCC) will be responsible for clearing and settling tokenized securities, with investors able to hold them in digital wallets. The approval has been seen as a positive development by some industry players, who believe it could pave the way for more efficient and inclusive financial systems.