The US SEC has approved Nasdaq's pilot program for tokenized stock trading.

PANews reported on March 19th that, according to The Block, the U.S. Securities and Exchange Commission (SEC) has approved a rule change for Nasdaq to allow it to support tokenized stock trading. According to the approval documents, eligible participants can settle trades in tokenized form through a pilot program operated by a depository trust company. Tokenized stocks will share the same order book and execution priority as traditional stocks and must provide shareholders with the same rights and privileges as conventionally traded stocks.

This move is the latest example of the convergence of traditional finance and cryptocurrency, marking a significant step towards putting market infrastructure on-chain. Previously, most tokenized shares were only available to non-U.S. users. The SEC chairman stated that public comment will be sought in the coming weeks on rule development, including a proposed innovation exemption. The pilot period has not yet been announced.