Nasdaq Eyes Tokenized Stock Trading: Blockchain on the Exchange?
Published Date: 12/17/2025
Notice
Summary
Nasdaq wants to let people trade stocks and exchange-traded products as digital tokens on their exchange. The SEC is now deciding whether to approve this new way of trading, which could modernize the market and attract new investors. A final decision is expected by December 21, 2025, and if approved, this could change how money moves in the stock world.
Analyzed Economic Effects
5 provisions identified: 3 benefits, 0 costs, 2 mixed.
Nasdaq May Trade Tokenized Shares
Nasdaq proposes to change its rules so it can trade ‘‘tokenized’’ equity securities and exchange-traded products. If a tokenized security is fungible with a traditional share, has the same CUSIP, and gives the same material rights (like dividends, voting, and liquidation rights), Nasdaq would trade the tokenized and traditional shares together on the same Order Book.
Flag Orders for Tokenized Settlement
The Exchange proposes a system flag that a Participant would select when entering an order if they want that trade to clear and settle in tokenized form. When the flag is used, Nasdaq will communicate that tokenization instruction to The Depository Trust Company (DTC) on a post-trade basis and DTC would carry out the instruction under its rules or make alternative arrangements.
Execution Priority Unchanged by Tokenization
Nasdaq would treat orders for tokenized securities the same as traditional securities when deciding execution priority. The proposed Rule 4757 specifies that indicating tokenized settlement or trading tokenized securities would not affect the priority in which the Exchange executes an order.
Fees Won't Vary By Tokenization
Nasdaq states its pricing structure and rates will not vary depending on whether a transaction involves a share of a tokenized stock. That means Nasdaq's stated fees would apply the same way to tokenized and traditional shares according to the Exchange's representation.
Effective Only After DTC Infrastructure Ready
The proposed trading of tokenized securities would become effective only after DTC establishes the requisite infrastructure and post-trade settlement services and any required regulatory approvals are obtained. DTC would determine eligibility for a member's orders to be settled in tokenized form under its policies and procedures.
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