The U.S. Securities and Exchange Commission (SEC) has approved Nasdaq's proposal to trade tokenized stocks.

This initiative will involve securities from the Russell 1000 index and several ETFs. Clearing and settlements will still be conducted through traditional market infrastructure. Tokenized assets (RWA) will retain all the characteristics of their traditional counterparts, including ownership rights, tickers, and trading priorities.

The process will allow brokers to make special annotations for RWA orders when submitting requests. After a trade is executed, Nasdaq will send instructions to the Depository Trust Company (DTC).

If the DTC cannot fulfill the request due to blockchain, wallet, or broker limitations, settlements will proceed in the standard format without using tokens.

Nasdaq submitted its application last September, comparing tokenization to the historical shift to electronic trading. In November, the head of the exchange's digital division, Matt Savarese, identified the RWA initiative as a top priority.

In its approval letter, the SEC emphasized that placing a security on the blockchain does not change its legal status. The asset remains a stock, not just a technological tool.

Experts have reacted positively to the regulator's decision. Clearpool's Chief Operating Officer, Steven Wu, called it an important step toward programmable assets.

“The market structure has already transitioned from T+3 settlements to T+1, but the ultimate goal is T+0 and continuous 24/7 trading,” he stated.

The head of international markets at Talos, Samar Sen, added that institutional investors will closely monitor the liquidity of this new format and its integration into the existing clearing system.

An analyst known as Crypto Patel described the decision as a significant step toward merging traditional finance with blockchain technologies.

🇺🇸 BREAKING: SEC Approves Nasdaq Rule Change for Tokenized Securities Trading

What This Means:
→ Select stocks and ETFs can now be represented as blockchain-based tokens
→ Same investor rights, pricing, and market infrastructure preserved
→ A major step toward merging TradFi… pic.twitter.com/3MaFx7VDaT

— Crypto Patel (@CryptoPatel) March 19, 2026

“This is not just a rule change. It’s an official acceptance of tokenization on Wall Street,” the expert emphasized.

Crypto Patel views the approval as a “green light” for the tokenization segment and a bullish signal for Ethereum, ONDO, and the entire RWA ecosystem.

As of this writing, the total market capitalization of the sector is $27.32 billion.

Source: RWA.xyz.

Recall that in March, corporations accelerated the transition of stock markets to blockchain.