Nasdaq Tokenization Plan Could Split Stock Trading Market, TD Securities Warns

Global equity markets are worth about $126 trillion, while stocks, bonds and funds are largely spread across separate systems constrained by trading hours and settlement processes. Nasdaq and Intercontinental Exchange (ICE), the parent of the New York Stock Exchange, are advancing stock tokenization that would preserve shareholder rights and governance while recording ownership and settlement on a blockchain. Their goal is to create shared market infrastructure capable of operating around the clock.

A March 15, 2026, report said Nasdaq was working with Kraken parent Payward to issue tokenized stocks globally as early as the first half of 2027. ICE, meanwhile, made a strategic investment in OKX at a $25 billion valuation and plans to offer tokenized stocks and crypto futures to its 120 million users. Data from April 2 showed that the relevant market remained worth only about $900 million, far short of the $126 trillion global equity market.

Securities tokenization uses blockchain to record ownership interests in stocks or ETFs and has previously developed mainly on crypto platforms or in over-the-counter markets. Nasdaq is now integrating the technology into an SEC-regulated national securities exchange and the DTC clearing system. Crucially, onchain shares will retain the same legal, economic and governance rights as traditional shares.

The SEC approved Nasdaq’s rule change on March 18, 2026. DTC’s three-year pilot covers Russell 1000 constituents and ETFs tracking major indexes including the S&P 500 and Nasdaq-100. Eligible participants may opt for tokenized settlement, while the two forms of shares will use the same ticker, CUSIP and order book. The existing T+1 settlement cycle and trading hours will remain unchanged, and no approved monetary amount was set for the program.