In a landmark move that signals a new chapter for both Wall Street and the blockchain industry, the U.S. Securities and Exchange Commission (SEC) has officially approved Nasdaq’s pilot program for the tokenized settlement of select securities.
Announced on March 18, 2026, this decision gives Nasdaq the green light to tokenize and settle Russell 1000 stocks and major ETFs using blockchain technology.
The SEC is publicly endorsing the use of distributed ledger technology at the heart of America’s equity markets, and the ripple effects will be felt from Main Street brokerage accounts to the most sophisticated crypto trading desks all over the world.
Breaking Down the SEC’s Approval
The SEC has approved a test program that will allow Nasdaq to turn certain stocks into digital tokens on a blockchain. This will include major companies from the Russell 1000 index as well as some popular ETFs.
Even though these stocks are being “tokenized,” they will still be processed through the same system that handles regular stock trades today, known as the Depository Trust Company. So nothing changes in terms of how trades are officially cleared and settled behind the scenes.
Crucially, the tokenized shares are fully fungible with their traditional counterparts. They carry the same CUSIP identifier, the same voting rights, and the same dividend entitlements.
From a legal and economic standpoint, a tokenized share of Apple (NASDAQ:AAPL) or a tokenized unit of the SPDR S&P 500 ETF is identical to the conventional version. The only difference is that it exists and moves on a blockchain.
Another important point is that these tokenized shares will trade in the same market as regular shares. Nothing will look different. But underneath, the technology powering the …Full story available on Benzinga.com
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