Illustrated Guide to the New SEC Report: Why Does the SEC Allow Nasdaq to Trade Tokenized Stocks?

Mars Finance News, March 19 — The U.S. Securities and Exchange Commission officially approved the Nasdaq rule change this morning, allowing for pilot trading of securities in a “tokenized form” within its exchange, marking a significant step toward blockchain integration in traditional capital markets. According to the plan, eligible stocks and ETFs can be cleared and settled on-chain within the existing trading system, sharing the same order book, trading priority, and fully aligned shareholder rights with traditional stocks. The pilot is based on the tokenization plan of the Depository Trust & Clearing Corporation (DTC), allowing investors to choose whether to settle in tokens at the time of order placement; the system will complete on-chain processing after the trade. Nasdaq stated that aside from the settlement method, trading rules, market data, fee structures, and regulatory monitoring remain unchanged, and tokenized securities are still fully within the framework of current securities laws. More details can be found in the attached diagram.