The U.S. Securities and Exchange Commission (SEC) has approved Nasdaq's plan to pilot tokenized stock settlement, allowing investors to choose between traditional common shares or blockchain-based digital tokens when purchasing stocks. Regardless of the chosen form, the settlement of these tokenized transactions will be handled by the Depository Trust Company (DTC), the settlement agent for the vast majority of U.S. stock market trades.
Meanwhile, Intercontinental Exchange (ICE), the owner of the New York Stock Exchange (NYSE), is also accelerating its progress in blockchain settlement. Following the announcement in early 2026 of its on-chain settlement platform for tokenized securities, ICE is actively seeking regulatory approval to officially launch the system. As an operator of global financial exchanges and clearing houses, ICE is a direct competitor to Nasdaq in this emerging field.
SEC Commissioner Hester Peirce emphasized the core regulatory stance: "Tokenized securities are still securities," making it clear that existing regulatory standards will continue to apply, regardless of the settlement technology used.
Nasdaq is further advancing its blockchain initiatives through a collaboration with Payward, the parent company of Kraken, to develop an "Equity Transformation Gateway." This move aims to integrate blockchain solutions more deeply into the traditional equity trading system, reflecting a broader strategic transformation underway at traditional exchanges.
According to the timeline disclosed in regulatory filings, Nasdaq's first tokenized settlement trades are expected to be completed by the end of the third quarter of 2026. This clear timeframe provides ample opportunity for market participants and institutional investors to adjust their infrastructure and compliance measures.
With multiple exchange groups vying to launch similar on-chain solutions and gain regulatory recognition, the SEC's approval is seen as a significant turning point in the mainstream tokenization of the securities market. As these platforms go live, customers may increasingly view tokenized equities as a viable alternative to traditional settlement methods.