SEC Prepares to Allow Blockchain Tokenized Stock Trading
The U.S. Securities and Exchange Commission (SEC) is preparing to launch an innovative exemption allowing blockchain tokenized stock trading, including digital versions of stocks like Apple, Tesla, and Amazon to be traded on blockchain networks and DeFi platforms.
A proposal by Nasdaq has been approved by the SEC, allowing certain stocks to be settled in token form alongside traditional shares. The DTC is developing an on-chain settlement system to support 24/7 trading, instant settlement, and fractional shares.
Institutional investors and DeFi platforms are driving the adoption of tokenized assets in the market. The SEC is integrating blockchain into traditional markets through a regulatory framework, benefiting traditional brokers and blockchain custody platforms, while pure centralized exchanges face short-term pressure. Capital is rapidly shifting from traditional equities to on-chain programmable assets.
Source: Public Information
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SEC issued a joint statement on tokenized securities in January 2026, clarifying that federal securities laws apply regardless of on-chain or off-chain records; in March, it approved Nasdaq's proposal, continuing the modernization path of "Project Crypto" long advocated by commissioners like Hester Peirce. Previously, the DTCC was approved to handle tokenization of Russell 1000 stocks and ETFs.
On the capital path, Nasdaq and DTC will combine existing clearing and settlement infrastructure with blockchain, allowing investors to choose traditional or token settlement per transaction, while attracting institutions into RWA through compliant channels. The motivation is to enhance liquidity, reduce settlement costs, and enable around-the-clock trading, forming an upgrade of capital markets from traditional T+2 settlement to near real-time on-chain ownership transfer.
Similar to Switzerland and Singapore, which have already allowed tokenized securities trading, and with state-level crypto-friendly legislation in the U.S. promoting this, the SEC is currently positioning the U.S. capital markets at the forefront of the transition from traditional electronic to blockchain-native settlement, pushing the industry from centralized clearing to programmable, composable asset stages.
Structural judgment: Essentially a reconstruction of the industrial chain. Blockchain replaces centralized bookkeeping of stock ownership with programmable on-chain tokens, where the mechanism of instant settlement and composability significantly reduces friction costs, forcing trading value to concentrate from traditional intermediaries and T+2 cycles to blockchain infrastructure supporting 24/7, around-the-clock, fractional shares, and DeFi integration.
ABAB News · Cognitive Law
Regulatory easing by an inch leads to liquidity by a mile.
Traditional stocks on-chain, programmability equals new pricing power.
The faster the clearing and settlement, the more efficient the capital turnover.