Executive TL;DR• In September 2025, Nasdaq submitted rule-change proposals to allow tokenised equities and exchange-traded products (ETPs) to trade alongside traditional securities on the same platform. The proposal represents the most significant traditional exchange commitment to tokenised equity infrastructure and the clearest signal that major US exchanges view tokenised equities as a production pathway rather than an experiment. • The DTCC which processes approximately $2.2 quadrillion in securities annually conducted its first live trades of tokenised US securities on July 15, 2026. The DTCC’s Tokenised Entitlement model provides the settlement infrastructure that Nasdaq’s tokenised trading framework would ultimately depend on: a mechanism for moving tokenised equity interests through the same settlement infrastructure that handles traditional securities. • The key architectural feature of the NYSE/DTCC approach: the underlying securities remain in the traditional DTC book-entry system (with Cede & Co. as registered owner), while a Tokenised Entitlement mirrors the position on-chain and enables blockchain-based mobility. This is not a replacement of the existing settlement infrastructure but an extension of it. • Ondo Finance’s partnership with Franklin Templeton for 24/7 tokenised ETF access illustrates the parallel private-market pathway: tokenised ETFs traded through Ondo’s platform, accessible to eligible investors outside traditional exchange hours, with the underlying ETF shares held in regulated custody and the tokenised access layer operating on Ethereum. • The endgame architecture which Nasdaq’s rule-change proposals move toward is a settlement system where tokenised equities and traditional securities share the same clearing and settlement infrastructure, with blockchain-based representation providing on-chain mobility alongside the existing DTC book-entry system. |
Nasdaq’s September 2025 rule-change proposals, the NYSE’s appointment of Securitize as digital transfer agent in March 2026, and the DTCC’s first live tokenised securities settlement on July 15, 2026 are three distinct but complementary moves by the three institutions that collectively constitute US equity market infrastructure. Understanding how they fit together reveals the architecture of the framework being built and what it will ultimately mean for how equities are traded, settled, and held.
The Nasdaq Proposal: What It Actually Said
In September 2025, Nasdaq submitted rule-change proposals to the SEC allowing tokenised equities and exchange-traded products to trade alongside traditional securities on the same platform. The significance of the proposal is not the technology it describes exchange and settlement infrastructure is complicated enough that the rule-change proposal necessarily addresses specifics but the institutional commitment it represents: the exchange that lists Apple, Microsoft, and most of the largest technology companies in the world is proposing to treat tokenised equities as a production instrument eligible for listing and trading on Nasdaq’s primary platform, not on a separate ‘digital assets’ venue.
The Bloomberg reporting on ICE (Intercontinental Exchange, NYSE’s parent) building venues specifically for non-stop tokenised stocks and ETFs reinforces the same signal from the other major US exchange group. Both the NYSE and Nasdaq are treating tokenised equity infrastructure as a mainstream market structure development, not a fringe experiment.
The DTCC’s Tokenised Entitlement Model
How the Settlement Infrastructure Works
The DTCC’s July 15, 2026 first live tokenised securities settlement used what the DTCC calls the Tokenised Entitlement model. The mechanics:
- A DTC Participant (a broker-dealer or other DTC member) holds traditional book-entry securities positions at DTC in the normal way. Cede & Co. DTC’s nominee entity is the registered owner on the issuer’s books.
- The Participant requests conversion of a portion of a book-entry position into a blockchain-based token. DTC immobilises the relevant entitlement into a Digital Omnibus Account specifically created for tokenised positions.
- DTC’s Factory system mints a corresponding Tokenised Entitlement token, delivered to the Participant’s Registered Wallet on the designated blockchain.
- The Tokenised Entitlement mirrors the underlying book-entry position. The token can be transferred between Registered Wallets on-chain. Each transfer reflects in DTC’s records.
- Cede & Co. remains the registered owner throughout. DTC maintains the authoritative record for tokenised entitlements in its own systems, reconciled to the Digital Omnibus Account. If the blockchain record and the DTC record disagree, the DTC record prevails.
Why This Architecture Matters
The Tokenised Entitlement model solves a specific institutional problem: how to introduce blockchain-based mobility for equity positions without requiring existing DTC participants to replace their settlement infrastructure. A broker-dealer that has decades of DTC connectivity does not need to rebuild its clearing and settlement operations to offer tokenised equity services it converts an existing DTC position into a Tokenised Entitlement and its clients can then interact with that position on-chain.
The compromise is that the Tokenised Entitlement is not a ‘native’ blockchain equity it is a digital representation of a traditional book-entry position, enabled to move on-chain while the traditional record remains authoritative. This is the hybrid architecture: blockchain adds on-chain mobility and composability on top of existing settlement infrastructure rather than replacing it.
The NYSE-Securitize Model: Digital Transfer Agency
On 24 March 2026, the NYSE named Securitize the first digital transfer agent eligible to mint blockchain-native securities for corporate and ETF issuers on the NYSE Digital Trading Platform. Under this arrangement, Securitize (as SEC-registered digital transfer agent) maintains official ownership records, supports corporate actions, and mints on-chain tokens that represent securities in a way that satisfies the NYSE’s listing and trading requirements.
This model differs from the DTCC Tokenised Entitlement approach: instead of converting an existing book-entry position into a tokenised representation, it creates blockchain-native securities from issuance instruments that exist primarily as on-chain tokens, with the transfer agent maintaining both the legal register and the on-chain record simultaneously.
The two models are complementary. DTCC Tokenised Entitlements allow existing securities to gain on-chain mobility. NYSE Digital Trading Platform instruments allow new issuances to be blockchain-native from the start. Together, they cover both the installed base of traditional securities and new issuances.
The Ondo-Franklin Templeton Pathway: Private Market 24/7 Access
Parallel to the exchange and clearing infrastructure developments, Ondo Finance’s partnership with Franklin Templeton for 24/7 tokenised ETF access demonstrates how private-market infrastructure is addressing the same investor demand through a different route. Eligible investors access tokenised Franklin Templeton ETF products through Ondo’s platform outside traditional trading hours, with the underlying ETF shares held in regulated custody and the tokenised access layer providing continuous availability.
This model does not depend on Nasdaq rule changes or DTCC infrastructure. It operates as a regulated securities offering tokenised ETF interests distributed through a compliant structure rather than as exchange-traded instruments going through DTC settlement. The regulatory pathway is different (private placement rather than listed securities) and the investor base is different (institutional and accredited rather than retail exchange-listed), but the investor experience 24/7 access to ETF exposure is similar.
The Framework Coming Together
The architecture that emerges from combining these three developments: traditional exchange infrastructure (Nasdaq, NYSE) providing listing and trading frameworks for tokenised equities; DTCC infrastructure providing settlement that bridges traditional book-entry positions and on-chain tokens; and private-market platforms (Ondo, Securitize) providing 24/7 access and blockchain-native issuance for eligible investors. Each layer addresses a different part of the investor base and a different part of the operational requirement.
The settlement standard that ties them together is the Tokenised Entitlement model: however tokenised equities enter the system, they ultimately settle through infrastructure that reconciles to the traditional DTC book-entry system. This provides the legal and operational certainty that institutional participants require the blockchain representation is the mobility layer; the DTC record is the settlement finality layer.
Frequently Asked Questions
1. What did Nasdaq propose in September 2025?
Nasdaq submitted rule-change proposals allowing tokenised equities and exchange-traded products to trade alongside traditional securities on the same Nasdaq platform. The proposal represents Nasdaq’s commitment to treating tokenised equities as a production market structure instrument, not a separate digital assets experiment.
2. How does the DTCC Tokenised Entitlement work?
A DTC Participant converts a traditional book-entry position into a tokenised representation by having DTC immobilise the entitlement in a Digital Omnibus Account and mint a corresponding token. The token can move on-chain; Cede & Co. remains the registered owner; if the blockchain record and DTC record disagree, the DTC record prevails. DTC conducted first live tokenised securities settlement on July 15, 2026.
3. How does the NYSE-Securitize model differ from the DTCC approach?
DTCC Tokenised Entitlements convert existing book-entry positions into on-chain representations. NYSE-Securitize blockchain-native securities are created as on-chain instruments from issuance, with Securitize as digital transfer agent maintaining both the legal register and the on-chain record simultaneously. The two models are complementary covering the installed base of traditional securities and new blockchain-native issuances respectively.
4. What is the 24/7 ETF access model Ondo developed with Franklin Templeton?
Eligible investors access tokenised Franklin Templeton ETF products through Ondo’s platform outside traditional trading hours, with underlying ETF shares held in regulated custody and the tokenised access layer providing continuous availability. This operates as a private placement rather than listed exchange-traded securities, covering institutional and accredited investors rather than retail exchange participants.
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Readers should conduct their own research and consult with qualified professionals before making any investment or business decisions.