NYSE and Nasdaq Enter the Fray Simultaneously, U.S. Stock Tokenization Begins Close Combat
- Core View: In March 2025, two major U.S. stock exchanges—Nasdaq and the NYSE—intensively launched tokenized securities solutions, marking an acceleration in the traditional financial market's acceptance of asset tokenization. However, they have chosen distinctly different technological paths.
- Key Elements:
- Nasdaq adopts a "compatibility route." Its SEC-approved solution relies on the existing DTC clearing system, where tokenized securities share order books and CUSIP numbers with traditional securities, with blockchain serving as an optional packaging layer.
- The NYSE chooses a "native route," partnering with Securitize to build an independent on-chain settlement infrastructure, aiming to achieve 24/7 trading and near-instant settlement. Securitize acts as the digital transfer agent responsible for on-chain asset minting.
- The regulatory environment is advancing simultaneously. The SEC has issued a no-action letter to the DTC, paving the way for Nasdaq's solution; a principled agreement has been reached on the CLARITY Act, with the Senate targeting review in late April.
- Compared to the multi-year development timelines of traditional exchanges (e.g., Switzerland's SDX, London Stock Exchange), the actions of the two major U.S. exchanges are significantly faster. Nasdaq expects to launch its first batch of trades in Q3 2026.
- Tokenization service provider Securitize is a key player, managing approximately $4.6 billion in assets. It is the NYSE's technology partner and also the provider for the world's largest tokenized treasury fund, BUIDL.
On March 24, the New York Stock Exchange announced it had signed a Memorandum of Understanding with tokenization platform Securitize to jointly develop a digital trading platform for tokenized securities. Just six days prior, the SEC had approved Nasdaq's rule amendments to enable the trading of Russell 1000 constituent stocks and major index ETFs in tokenized form. Within the same month, America's two largest stock exchanges each unveiled their own tokenization plans.
This is not an isolated move by one or two institutions. Looking at the calendar for March, the density of activity is remarkable.
On March 9, Nasdaq partnered with Payward, the parent company of crypto exchange Kraken, to plan a distribution channel for tokenized stocks for non-U.S. users. On March 18, the SEC approved Nasdaq's rule amendments. On the same day, S&P Dow Jones Indices licensed its flagship S&P 500 index to the on-chain protocol Trade.xyz for issuing perpetual contracts on the decentralized derivatives platform Hyperliquid.
On March 24, the NYSE signed with Securitize. On the same day, Invesco, managing $2.2 trillion in assets, announced it would take over the USTB fund from on-chain treasury fund manager Superstate, with a size of $967 million. On March 25, the U.S. House Financial Services Committee held a special hearing titled "Tokenization and the Future of Securities: Modernizing Our Capital Markets." According to FinTech Weekly, attendees included Kenneth Bentsen Jr., CEO of the Securities Industry and Financial Markets Association (SIFMA), and Summer Mersinger, CEO of the Blockchain Association.
Six events in 17 days. Two major exchanges, three traditional asset management firms, one SEC approval, one Congressional hearing. Among these events, the plans from Nasdaq and the NYSE are most worthy of deeper analysis. The two are pursuing distinct technical paths, and the divergence is greater than most realize.
Nasdaq is taking a compatibility route. According to the SEC's approval document (34-105047) released on March 18, Nasdaq's tokenized securities trading will still be settled through the existing clearing system of the Depository Trust Company (DTC). Traders select a tokenized asset when placing an order, specify a blockchain and wallet address, and the DTC handles verification and settlement on the backend. Tokenized shares share the same CUSIP number as traditional shares, are matched on the same order book, and have identical execution priority. If the DTC determines a participant is ineligible or the specified blockchain is incompatible, the transaction automatically reverts to traditional settlement. In this model, the blockchain is an optional wrapper; the underlying clearing pipeline remains unchanged. According to an analysis by the legal website Free Writings & Perspectives, eligible assets include Russell 1000 index constituents and ETFs tracking the S&P 500 and Nasdaq 100. The first tokenized trades are expected to launch in Q3 2026.
The NYSE is taking a different path. According to a BusinessWire press release, the NYSE has designated Securitize as its first "Digital Transfer Agent," responsible for minting blockchain-native securities on-chain, maintaining ownership records, and handling corporate actions like dividends. According to CoinDesk, the NYSE is collaborating with BNY Mellon and Citi to integrate tokenized deposits and stablecoin payments, aiming to enable 24/7 trading and near-instant settlement. This path is not about adding a layer to the existing clearing pipeline but building an independent on-chain settlement infrastructure. In the press release, NYSE Group President Lynn Martin's wording skipped "exploring" and "piloting," stating directly that the development of the new infrastructure must "preserve the trust, transparency, and protection investors expect."
The core of the divergence is this: Nasdaq is adding to the existing order book, maintaining unified liquidity, and can launch once the DTC updates its systems. The NYSE is building a separate digital trading platform to run in parallel with the existing exchange, prioritizing 24/7 trading and instant settlement, though CoinDesk reports a specific launch date has not been announced. Securitize is the core technical support for the NYSE's plan. According to PRNewswire data, it currently manages approximately $4.6 billion, representing about 25% of the tokenized RWA market.
It is also the technology provider for BlackRock's BUIDL fund. Public data shows BUIDL has reached $2.38 billion in size within 15 months of launch, making it the world's largest tokenized treasury fund. According to CoinDesk, Securitize's revenue for the first three quarters of 2025 grew 841% year-over-year to $55.6 million, and PRNewswire reports it is going public via a SPAC with a $1.25 billion valuation. By choosing Securitize as its first Digital Transfer Agent, the NYSE is entrusting the minting authority for tokenized securities to an infrastructure company on the verge of a public listing.
Regulatory progress is also advancing in parallel. According to CoinDesk, the CLARITY Act, previously stalled for months over stablecoin yield provisions, recently reached a "principled agreement," with FinTech Weekly reporting the Senate Banking Committee aims for a markup in late April. In December 2025, the SEC issued a No-Action Letter to the DTC. According to an official DTCC announcement, this letter authorizes the DTC to provide tokenization services under a regulated framework, which is the prerequisite for Nasdaq's plan to proceed.
All of this happened within a single month. Viewed globally, what does this pace signify?
Switzerland's SDX is the world's first fully licensed DLT exchange, launching in 2021. According to Ledger Insights, it has issued over CHF 400 million in tokenized bonds, but its daily trading volume is only CHF 2-5 million, with influence largely confined to Switzerland. The London Stock Exchange Group (LSEG) launched its DMI platform in September 2025. According to an LSEG official announcement, its first transaction involved private fund tokenization, and it is currently applying for a Digital Securities Depository (DSD) license.
Deutsche Börse's Clearstream began issuing tokenized European bonds on its D7 platform in Q4 2025, with electronic equities expected to launch in the second half of 2026 according to Clearstream's website. The Singapore Exchange (SGX), through its joint venture with Temasek, Marketnode, has issued over SGD 1 billion in digital bonds according to SGX website data. HKEX and JPX are still in the pilot and planning stages.
Most of these exchanges spent two to three years progressing from pilot to partial launch. Nasdaq's timeline from SEC approval to its first expected trades is just one quarter. The NYSE, from signing an MOU, is directly targeting on-chain native settlement. What took SDX five years to achieve, America's two largest exchanges have positioned themselves at their respective starting lines within a month. Nasdaq is adding a layer to the existing foundation; the NYSE is laying a new foundation right beside it.
