Nasdaq receives SEC nod for trading in tokenized securities

March 18 (Reuters) - The ‌U.S. Securities ​and ​Exchange Commission on Wednesday approved a Nasdaq proposal to allow certain stocks to ‌be traded and settled in tokenized form, ⁠according to a regulatory filing, marking a step toward ‌integrating blockchain-based settlements into ‌mainstream equity markets.

Exchange operators have been doubling down on their push to capitalize on the ​boom in tokenization as regulations for cryptocurrencies ease under the Trump administration.

The move would ⁠allow investors to trade high-volume stocks as traditional shares or as ​blockchain-based digital tokens to be settled through the Depository Trust Company.

Nasdaq had filed a ​proposal with the SEC ‌in September to amend its rules to allow listed stocks and exchange-traded products ⁠to trade on its main market in either traditional or tokenized form.

Securities eligible for tokenized trading ⁠would initially be limited to stocks in the Russell 1000 ​Index, as well as exchange-traded funds tracking major benchmarks such as the S&P 500 and the Nasdaq 100, ‌the filing said.

Rival Intercontinental Exchange also said earlier this year that it had ‌developed a platform for trading and on-chain ⁠settlement of tokenized securities, ‌for which the ​NYSE parent is seekingregulatory approvals.

(Reporting by Utkarsh Shetti in Bengaluru; Editing by Alan ‌Barona)

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