Nasdaq Gets SEC Approval for Tokenized Securities Trading

The US Securities and Exchange Commission (SEC) has given its green light to a rule change that will allow Nasdaq to facilitate trading in tokenized securities.

Tokenized securities are blockchain-based representations of traditional financial instruments, such as stocks and bonds, where ownership rights are recorded as digital tokens on a distributed ledger.

The SEC's approval is seen as a significant step towards the integration of blockchain technology into mainstream financial markets. Proponents argue that tokenization can enable faster settlement, around-the-clock trading, and fractional ownership, modernizing elements of market infrastructure that have long relied on legacy systems.