<div id="readability-page-1"><div>The U.S. Securities and Exchange Commission approved a rule change on Wednesday, allowing Nasdaq to support the trading of tokenized shares, marking another example of how traditional finance and crypto are converging.Eligible participants will be able to settle trades in tokenized form during a pilot program operated by the Depository Trust Company, part of the DTCC, according to a filing.The rule change allows participants in the pilot to opt to have stock trades settled in tokenized form, with the equities sharing the same order book and execution priority as traditional shares, the filing said. Tokenized shares must also provide shareholders with the same rights and privileges as a regularly traded equity.Under Chairman Paul Atkins, the SEC has begun advancing crypto-related rulemaking, including work on a potential &#34;innovation exemption&#34; for onchain securities. The agency has generally taken a cautious stance, emphasizing that tokenized securities remain subject to existing securities laws.The move to enable tokenized representations of traditional equities to trade on a major U.S. exchange, however, represents a significant and practical step toward potentially bringing market infrastructure onchain. So far, most tokenized stock offerings have only been available to non-U.S. users by platforms seeking to give crypto investors exposure to companies like Tesla and Apple.Wednesday's approval also follows broader momentum from both crypto firms and traditional financial institutions advocating for tokenized securities. In December, the SEC authorized the DTCC to pilot the tokenization of certain assets on approved blockchains. Separately, the New York Stock Exchange has said it is exploring platforms for trading and settling tokenized securities, including the possibility of extended trading hours.Notably, the push toward tokenization has faced resistance from some traditional finance groups, which argue that stronger regulatory guardrails are needed for blockchain-based securities.On Tuesday, Atkins said the agency plans to seek public comment in the coming weeks on a range of topics tied to future rulemaking, including the proposed innovation exemption.&#34;I really feel strongly that we need to have that firm foundation, give people certitude, attract people back here to the United States, work on innovative products for investors and to make our financial system more efficient and less risky,&#34; Atkins said.The SEC filing did not stipulate how long the pilot program will last.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. </div></div>

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The SEC has approved Nasdaq's pilot program for trading tokenized equities, allowing eligible participants to settle trades in tokenized form. This initiative marks a convergence of traditional finance and crypto, with tokenized shares sharing the same order book as traditional stocks. The SEC emphasizes that tokenized securities must comply with existing laws. This approval follows growing support for tokenized securities from both crypto and traditional finance sectors, despite some resistance for stronger regulations. The duration of the pilot program has not been specified.

- The U.S. Securities and Exchange Commission has approved a rule change allowing Nasdaq to facilitate the trading of tokenized shares, integrating traditional finance with cryptocurrency.  
- Eligible participants in a pilot program can opt for tokenized settlement of stock trades, with these shares maintaining the same rights as traditional equities.  
- This approval reflects growing support for tokenized securities amid requests for stronger regulations, with potential impacts on market infrastructure and investment practices in the U.S.

SEC approves Nasdaq tokenized equities trading pilot