Nasdaq has filed with the U.S. Securities and Exchange Commission to allow tokenized versions of stocks and ETFs to trade side by side with their traditional counterparts. If approved, this could be one of the most significant shifts in U.S. market structure since electronic trading took over. The exchange is targeting the third quarter of 2026 for implementation, once central clearing infrastructure is ready to support onchain settlement.

Why Tokenized and Traditional Shares Together Matters?

Trading tokenized shares on the same order book as their traditional versions isn’t just a technical upgrade. It’s a signal that Wall Street is preparing for a hybrid model where blockchain-based assets are no longer experimental side projects but part of the national market system. Nasdaq has been clear: tokenized shares must carry the same rights and privileges as their underlying securities. That means no shortcuts on voting rights, dividends, or investor protections.

This approach is a direct counter to overseas platforms that offer synthetic versions of U.S. equities without conferring shareholder rights. By setting a higher bar, Nasdaq is positioning tokenization as legitimate, not speculative.

The Regulatory Angle: SEC, Congress, and the Trump Administration

The filing lands while the SEC is still debating how to handle crypto on national exchanges and as Congress drafts a market-structure framework for tokenized assets. Lawmakers are looking to draw lines between SEC and CFTC oversight, with rules on custody, audits, and reporting. The political backdrop matters too. Nearly a year into President Donald Trump’s second term, Washington is moving toward a more pro-crypto stance, giving tokenization a tailwind that wasn’t there under the previous administration.

Traditional players aren’t sitting this out. Citadel Securities warned regulators against granting exemptions and stressed that investor protections must remain intact. The message is clear: tokenization can’t be an excuse to water down market rules.

The Institutional Race: Nasdaq, Coinbase, and Banks

Nasdaq isn’t alone. Coinbase has floated the idea of tokenized equities as part of its “everything exchange” plan. JPMorgan is exploring tokenized deposits and funds. The common thread is that large incumbents and crypto-native firms alike see real-world asset tokenization as the next frontier. The prize is enormous: faster settlement, lower operational risk, and a more programmable financial system.

If Nasdaq secures approval, it won’t just set a precedent for U.S. exchanges. It could establish the baseline for how tokenized assets are traded globally, forcing rivals to follow.

Predictive Outlook: What Happens Next?

The road to 2026 will be shaped by three factors:

• Regulatory clarity – Congress’s framework will determine how much freedom exchanges and issuers have. If lawmakers define tokenization in a way that avoids double regulation, adoption could accelerate.
• Infrastructure readiness – Onchain settlement can only scale once the Depository Trust Company and similar entities adapt. Without central clearing integration, tokenization risks being a bolt-on rather than a replacement.
• Market adoption – Investors will need to see that tokenized shares aren’t just gimmicks but provide real efficiency. If early trials show faster settlement and lower costs without eroding protections, liquidity will migrate naturally.

By 2026, if everything aligns, we could see tokenized trading move from pilot programs to mainstream adoption. Nasdaq’s move suggests that what was once an experimental concept is now on the verge of being institutionalized.

This filing isn’t about Nasdaq experimenting with crypto. It’s about the U.S. financial system preparing for tokenization to become part of the market’s backbone. With Congress writing new rules, Wall Street incumbents circling, and blockchain infrastructure maturing, the stage is set for a transformational shift. If approved, this could mark the moment when tokenized assets stop being a side story and start shaping the future of capital markets.