Nasdaq is teaming up with U.S. regulatory bodies to chart out the launch of a tokenized securities trading venture. Against the backdrop of the Trump administration's move to ease cryptocurrency regulations, the fervor for tokenization is reaching new heights. Nasdaq has now joined the ranks of prominent Wall Street financial institutions that are ramping up their investments in this burgeoning field.

Should the plan receive the green light, tokenized securities will, for the first time, be allowed to trade on major U.S. stock exchanges. This would represent the most audacious endeavor by exchange operators to weave blockchain settlement into the fabric of the national market system.

On Monday, Nasdaq presented a proposal to the U.S. Securities and Exchange Commission (SEC), seeking amendments to regulations that would permit the trading of listed stocks and exchange-traded products on its primary market in both conventional digital and tokenized iterations. Nasdaq has clarified that if the proposal gains approval and the central clearing institutions' infrastructure is primed for action, investors will gain the ability to buy stocks on Nasdaq and settle transactions in a tokenized manner. It is projected that by the end of the third quarter of 2026, U.S. investors might witness the inaugural batch of securities transactions being settled in tokenized form.