Nasdaq’s rule change focuses on settlement after trade execution, not a separate market for . Eligible participants must choose a specific order-entry flag when they want tokenized settlement. Nasdaq then sends that instruction to DTC after the trade executes. Accordingly, the tokenized process remains linked to existing trading and centralized clearing systems.
The structure of the pilot follows DTC’s no-action relief from December 11, 2025. SEC staff allowed DTC to develop a preliminary tokenization service for certain eligible securities. The no-action materials covered tokenized entitlements for Russell 1000 securities, selected U.S. Treasury securities, and major index ETFs. Commissioner Hester Peirce said the program would support tokenization of security entitlements that DTC participants hold through DTC.
The filing also includes a fallback mechanism. If DTC cannot complete tokenized settlement, it will settle the executed order in non-tokenized form. That can happen if a participant uses an unsupported blockchain or an unregistered wallet. As a result, the pilot allows tokenized settlement without removing the traditional settlement route.