SEC approves tokenized securities to trade alongside traditional stocks

The US Securities and Exchange Commission (SEC) has approved a rule change by Nasdaq that will allow securities to be tokenized and traded alongside traditional stocks. This marks a significant step towards integrating blockchain technology into established financial market infrastructure. Eligible securities, including stocks from the Russell 1000 and ETFs tracking indices like the S&P 500, can now be represented as tokenized assets on Nasdaq, trading on the same order book with identical execution priority and market data. These tokenized securities will be fully fungible with their traditional counterparts, maintaining the same ticker, CUSIP, and shareholder rights, including voting rights and dividend access. The Depository Trust Company will lead a pilot program to handle post-trade settlement and tokenization. The SEC stated the proposal meets regulatory requirements, protecting investors and maintaining market integrity. This approval signals growing momentum for tokenization within regulated financial markets, allowing for blockchain-based asset representation without deviating from existing frameworks.

(Source：Crypto Briefing)