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18 Mar 2026, 20:55

SEC Approves Revolutionary Nasdaq Rule for Tokenized Stock Settlement

BitcoinWorld SEC Approves Revolutionary Nasdaq Rule for Tokenized Stock Settlement In a landmark decision for financial markets, the U.S. Securities and Exchange Commission (SEC) has officially approved a pivotal Nasdaq rule change, clearing the path for the tokenized settlement of traditional securities. This groundbreaking move, reported by Wu Blockchain on April 10, 2025, authorizes a pilot program that could fundamentally reshape post-trade infrastructure. Consequently, the approval signals a major regulatory step toward integrating blockchain technology into the core of U.S. capital markets. SEC Approves Nasdaq’s Tokenized Settlement Framework The SEC’s approval centers on a Nasdaq-proposed amendment to its rules, specifically enabling the Depository Trust Company (DTC) to settle certain equity securities in a tokenized form. This initiative, known as the DTC tokenization pilot program, allows qualified broker-dealers and institutional participants to opt for blockchain-based settlement. Participants can activate this feature simply by setting a specific order flag on eligible trades. Importantly, the design ensures market integrity remains paramount. Tokenized shares and their traditional counterparts will coexist within the same consolidated order book. Furthermore, they will receive identical execution priority, preventing any market fragmentation or unfair advantage. The pilot program will commence with a carefully selected basket of assets. Initially, the scope includes constituents of the Russell 1000 Index, which represents the top 1,000 publicly traded companies in the U.S. by market capitalization. Additionally, the program will incorporate a selection of major exchange-traded funds (ETFs) that track significant indexes. This phased approach allows regulators and market operators to monitor performance, assess risks, and evaluate scalability within a controlled environment before potential expansion. The Mechanics and Context of the DTC Tokenization Pilot Tokenization, in this context, refers to the process of creating a digital representation of a traditional security on a distributed ledger. Each tokenized share is a digital asset that corresponds directly to a traditional share held in custody. The DTC, the national clearinghouse for U.S. securities, will act as the issuer and custodian for these digital tokens. This structure leverages blockchain’s potential for near-instantaneous settlement, often called T+0, while maintaining the trusted, centralized role of the DTC. The move follows years of industry experimentation and regulatory consultation. For instance, projects like the Australian Securities Exchange’s now-canceled blockchain overhaul and various European trials have provided valuable lessons. The U.S. approach, however, is distinct in its focus on integrating new technology directly into the existing, highly regulated framework of a national market utility. Expert Analysis on Market Impact and Regulatory Signals Market analysts and legal experts view this approval as a significant, albeit cautious, signal from the SEC. “This is not an endorsement of cryptocurrency speculation,” notes a former SEC official familiar with the proposal. “Instead, it’s a targeted experiment in applying distributed ledger technology to solve specific inefficiencies in settlement and record-keeping.” The potential impacts are multifaceted. Primarily, tokenized settlement could drastically reduce counterparty risk and capital requirements for brokers by shortening the settlement cycle. It may also enhance transparency through an immutable audit trail of ownership. However, experts caution that the pilot is a test. Key challenges around interoperability, cybersecurity, and legal finality of transactions on-chain remain active areas of focus. The table below outlines the core differences between traditional and tokenized settlement under this pilot. Aspect Traditional Settlement (T+2) Tokenized Pilot Settlement Settlement Time Two business days (T+2) Potential for same-day or instantaneous (T+0/T+0.5) Record-Keeping Centralized database at DTC Distributed ledger with DTC as issuer Asset Form Electronic book-entry Digital token representing book-entry Market Access Standard equity market Same order book, optional tokenized settlement Simultaneously, this development occurs within a broader global trend of financial market digitization. Jurisdictions like Switzerland, Singapore, and the European Union are advancing their own digital asset frameworks. The SEC’s action, therefore, positions U.S. markets to remain competitive. It provides a regulated sandbox for American financial institutions to develop expertise in digital asset infrastructure. Ultimately, the data gathered from this pilot will inform future policy decisions and could pave the way for more widespread adoption of blockchain in mainstream finance. Conclusion The SEC’s approval of Nasdaq’s tokenized settlement rule marks a historic inflection point for traditional finance. By sanctioning a real-world pilot within the existing market structure, regulators have opened a controlled pathway for blockchain innovation. The success of this DTC tokenization program will hinge on its ability to demonstrate enhanced efficiency, resilience, and security. If proven, this model could gradually transform the foundational plumbing of global securities markets, making the vision of instantaneous, transparent settlement a tangible reality. The focus now shifts to the operational rollout and the valuable data it will generate for the future of finance. FAQs Q1: What does “tokenized settlement” mean in this context? Tokenized settlement refers to the process of clearing and settling a trade by representing the ownership of a traditional security (like a stock) as a digital token on a blockchain. The token is a digital certificate of ownership issued and backed by the Depository Trust Company (DTC). Q2: Can retail investors participate in the tokenized settlement pilot? No, initially the pilot program is designed for qualified institutional participants and broker-dealers. It is a test within the wholesale market infrastructure. Retail investors would continue to trade and settle through their brokers as usual, potentially benefiting from downstream efficiencies. Q3: Does this mean stocks will become cryptocurrencies? No. The pilot involves creating a digital representation of existing, regulated securities on a permissioned blockchain. These are not new, volatile crypto assets. They are digital tokens that mirror the value and rights of the underlying Russell 1000 stocks and ETFs, issued by the trusted central securities depository (DTC). Q4: How does this affect the current two-day settlement cycle (T+2)? The technology enables the potential for much faster settlement, possibly same-day or instantaneous (T+0). However, the pilot will first test the functionality and reliability. A full transition away from T+2 would require further regulatory rulemaking and industry-wide implementation based on the pilot’s results. Q5: What are the main risks the SEC is trying to assess with this pilot? The SEC and market operators will closely monitor several risks, including: the technological resilience and security of the blockchain system, the clarity of legal ownership and finality of tokenized transactions, operational integration with legacy systems, and the management of any novel cybersecurity threats specific to the digital asset infrastructure. This post SEC Approves Revolutionary Nasdaq Rule for Tokenized Stock Settlement first appeared on BitcoinWorld .

18 Mar 2026, 20:44

SEC approves Nasdaq's move to support tokenized securities trading

The SEC’s approval lets Nasdaq test blockchain-based versions of stocks that trade and settle like traditional shares.

18 Mar 2026, 20:26

BTCI: Squeezing Yield With This 'Bitcoin-Adjacent' Income ETF

Summary NEOS Bitcoin High Income ETF (BTCI) offers high-yield monthly payouts by combining indirect bitcoin exposure with synthetic covered call strategies. BTCI provides tax-efficient distributions, treating most payouts as return of capital, thus deferring tax liability until sale. The fund sacrifices full bitcoin upside for steady income and downside offset, appealing to investors prioritizing cash flow over pure price appreciation. BTCI's structure delivers attractive yield but exposes investors to bitcoin's volatility and limits participation in strong rallies. Due to the educational nature of this article, I won't be rating the NEOS Bitcoin High Income ETF ( BTCI ). Instead, I'll break it down into its individual parts so it's easier to understand. What's BTCI Made Of? The prime directives of this ETF are distributions and price capture using indirect and synthetic exposure to Bitcoin ( BTC-USD ) with covered call selling. The indirect exposure comes from holding spot bitcoin funds like the iShares Bitcoin Trust ETF ( IBIT ) and the VanEck Bitcoin ETF ( HODL ), a long position is created by buying calls and selling puts at the same strike and expiration on bitcoin-adjacent instruments, and calls are then sold on this synthetic long position to collect premiums. This scaffolding, or laddering, is constructed with the following holdings (as I write this). NEOS The holdings are broken down to 94% cash, 24% in iShares and VanEck spot Bitcoin ETFs for the indirect exposure, the call-put synthetic long position, and the covered call selling (at the time of writing). The options positions roll over periodically, and on and on it goes. The fund has been around for about a year and a half, with an inception date of October 16, 2024. BTCI's expense ratio is 0.98% net of AFFE or acquired fund fees and expenses, and in the 1.5 years it's been with us, the AUM has grown to over $960 million. The yield on the dividends current runs at a trailing figure of 43%. Historical Performance Since the fund is indirectly exposed to Bitcoin, it's not really a surprise that it somewhat tracks the price of the underlying asset. Since this is a high income strategy reliant on covered calls, that comes at the cost of price underperformance — your cow gets thinner the more you milk it. In the last the 1Y period, you can see how bitcoin's been struggling for more than half that time. Data by YCharts There's a concept called path dependency that's useful to know about with regard to income ETFs that rely on income generated from options premiums. The effect of path dependency is linked to the expiration of the options contracts. Funds like BTCI that hold one-month-forward contracts are essentially locked out for that period because they can't fully participate in rallies that are shorter than a month. When the underlying asset experiences a downturn, the BTCI's NAV also draws down similarly. Then, there's less "cow" on which to write these options contracts in the future for the "milk." An even more detrimental effect is asset value drag, and this is tied to the moneyness of the strikes. Far OTM strikes may work better here because there's less of a lockout, but the fund needs to find an ideal balance because near-the-money calls have higher premiums, and this is key to stabilizing the monthly income. In a prolonged bear market, if the fund wants to maintain its payouts, that cow is going to get thinner a lot faster. I'm not building a case for or against BTCI, as I said, so you'll need to balance this view with a look at total return because it's actually done much better than bitcoin. One important point of note here is that TR is always based on dividends being reinvested, which doesn't really make sense for an income ETF. Still, a cash payout is a type of return even though it may reduce the fund's net assets and therefore reduce your TR moving forward. SA What's happening is that the income that BTCI is generating through its synthetic covered call selling strategy has given it an advantage over a pure crypto holding, even after paying the gross ER of ~0.99%. Since you're taking out the cash every month, your TR should theoretically approximate what you'd get from a pure play bitcoin holding. Pros and Cons You've got a unique way to convert a synthetic bitcoin position into cash, and it's all because of the way the portfolio is constructed. You've got your upside from the fund holding spot bitcoin ETFs, and there's a tax benefit that we'll be discussing below. Don't mistake those pretty big advantages for the absence of negatives, because there's plenty of that. In this section, let's look at the pros and cons, and how it helps on the taxation side of things. Pros Cons High yield with monthly cash payouts No direct crypto exposure Stable price dynamics Unable to capture upside fully Downside offset Linked to a risky and volatile underlying asset Tax-efficient distros Short history I'm hoping this gives you a balanced view of BTCI so you can begin your own investigation into this cash generator. I'd also like to comment on the tax treatment for the distributions because that's an important piece of information when you're looking at the feasibility of investing in the ETF. If you look at the 19a-1 notices for each month, like the one for February 2026 , you'll notice that most of it is being returned as capital. NEOS While the 19a is an approximation of tax treatment giving investors a monthly idea of what to expect, the end of year tax statements and documents like Form 8937 has the final breakdown. That's the tax treatment angle, and it's important to know how that will affect what you pay the taxes. Normal dividend income is typically treated as ordinary income for the purpose of taxation. Depending on your tax bracket and a whole bunch of other considerations, you'll end up paying a higher rate than what you'd pay on capital gains. Now, the fund wants to pay you a hefty dividend every month, and that cash has to come from somewhere, right? We know it's generated by contract premiums, but by accounting for it as a return of your invested capital most of the time ((RoC)), the fund helps you cut your present tax burden considerably. The IRS treats this as your own money coming back to you, which means the cost of the investment you first made comes down by that much. The real kicker is that you can defer your taxes until you sell that position, and it helps the longer you hold it because the capital pile keeps getting smaller, and your tax on that tapers down in lockstep. However, once you reach your cost basis of 0%, gains above this are treated as long-term capital gains. Talk to your tax professional for more clarity on your own tax position, but that's the short lay version. There's also a problem that goes with it. We saw the flip side as the fund being unable to take advantage fully of bitcoin price escalations, and if you look at the period last year where bitcoin had a 60% run-up, that's obvious. SA Key Takeaways Incidentally, just this past week , the 20 millionth bitcoin was mined, theoretically giving us 114 years before the final millionth is mined into existence. The future may look good for Bitcoin. Most experts, including Grayscale, say that 2026 will be a pivotal year for two reasons — the demand for a non-conventional store of value, and regulatory integration of bitcoin into the mainstream economy. Time will tell. There's plenty to like about BTCI, and equally, lots to be wary of. If you want direct exposure to Bitcoin, investing in BTC-USD or a spot bitcoin ETF may be the better route. Conversely, if you're looking for income that helps take away some of your present tax load, this might be the right vehicle for the job. Suitability A few final points before I go. This ETF isn't for everyone. It's designed for a specific type of investor who's willing to let some upside go so they can enjoy ongoing income. The payouts are really attractive, the return of capital is good for tax purposes, and you're taking advantage of bitcoin's price movements so you're a participant in at least some of the upside. The other side of this coin is that you don't get full exposure to strong bitcoin rallies, you don't really own any of the underlying assets, but you still run the risk of sharp or prolonged drawdowns decimating the asset base that's printing that cash for you. This may be a useful ETF for those who anticipate a sideways market and foresee the total return profile of BTCI may be more attractive than straight Bitcoin for a period of time. How you use it as part of your portfolio strategy is what ultimately matters, but I hope I've been able to shed enough light on BTCI for you to use as a starting point for your own scrutiny. This article answers three questions about BTCI: How does BTCI relate to the price of Bitcoin? What risks should investors consider when owning BTCI? Which environments and investor types is BTCI best suited for? Editor's note: This article is intended to provide a general overview of the ETF for educational purposes only and, unlike other articles on Seeking Alpha, does not offer an investment opinion about the ETF.

18 Mar 2026, 20:20

SEC Greenlights Nasdaq Rule Change, Clearing Path for Tokenized Securities Trading in US Markets

The U.S. Securities and Exchange Commission (SEC) has approved Nasdaq’s long-awaited rule change, allowing tokenized versions of stocks and ETFs to trade alongside traditional shares on the exchange. SEC Backs Nasdaq Plan to Integrate Blockchain Into Stock Trading Nasdaq’s proposal, first filed in Sept. 2025 and refined through multiple amendments, enables market participants to trade

18 Mar 2026, 20:20

From Coinbase to Ripple: The Biggest Crypto Cases Dumped by Trump's SEC

Under President Trump, the SEC has backed down from nearly all its fights with crypto firms. These are the biggest cases ended so far.

18 Mar 2026, 19:40

Historic FTX Creditor Repayment: $2.2 Billion Distribution Begins March 31

BitcoinWorld Historic FTX Creditor Repayment: $2.2 Billion Distribution Begins March 31 The FTX Recovery Trust has confirmed a landmark $2.2 billion creditor repayment scheduled for March 31, 2025, marking a pivotal moment in one of cryptocurrency’s most significant bankruptcy cases. According to official announcements, this initial distribution represents a crucial step toward resolving claims from the collapsed exchange’s extensive creditor base. The funds will reach creditors through established financial channels including BitGo, Kraken, and Payoneer within one to three business days. This development follows months of complex asset recovery efforts and legal proceedings that have captivated the digital asset industry. FTX Creditor Repayment Timeline and Process The March 31 distribution represents the first major creditor payment from the FTX bankruptcy estate. The FTX Recovery Trust, which manages the exchange’s remaining assets, has coordinated this complex financial operation. Creditors should expect fund transfers through their designated payment platforms beginning immediately after the scheduled date. Furthermore, the trust has outlined additional repayment phases for preferred shareholders later in 2025. This structured approach ensures systematic distribution according to bankruptcy court approvals and creditor classifications. Bankruptcy experts note this repayment process follows established protocols for major financial insolvencies. The court-supervised distribution prioritizes verified creditor claims based on their classification and documentation. Consequently, different creditor groups may receive payments according to varying schedules and percentages. The $2.2 billion figure represents the initial tranche rather than the total anticipated recovery amount. Additional distributions will follow as asset liquidation continues throughout the year. Cryptocurrency Exchange Bankruptcy Context The FTX collapse in November 2022 created unprecedented challenges for cryptocurrency markets and regulatory frameworks. At its peak, the exchange handled approximately $10 billion in daily trading volume. Its sudden failure left millions of customers and creditors facing substantial financial losses. Since then, the bankruptcy proceedings have involved recovering assets across multiple jurisdictions and legal systems. The current repayment announcement signals measurable progress in resolving these complex financial entanglements. Comparatively, other major cryptocurrency bankruptcies have followed different resolution timelines. For instance, the Celsius Network bankruptcy involved creditor repayments beginning approximately 18 months after filing. The Voyager Digital case required nearly two years before initial distributions. FTX’s accelerated timeline, while still substantial, demonstrates relatively efficient asset recovery efforts despite the case’s extraordinary complexity. Legal professionals attribute this progress to coordinated international cooperation among regulatory bodies. Asset Recovery and Liquidation Strategies The FTX Recovery Trust has employed multiple strategies to maximize creditor recoveries. These approaches include selling cryptocurrency holdings during favorable market conditions and pursuing legal claims against various counterparties. Additionally, the trust has recovered substantial amounts through clawback actions and settlement agreements. The following table illustrates key recovery categories: Recovery Category Estimated Value Status Cryptocurrency Holdings $3.4 billion Partially Liquidated Venture Investments $1.2 billion Ongoing Sales Real Estate Assets $300 million Market Disposition Legal Settlements $700 million Negotiations Ongoing These recovery efforts have enabled the substantial distribution now reaching creditors. The trust continues pursuing additional assets through various legal channels. Market analysts project total creditor recoveries could eventually reach significant percentages of original claims. However, exact recovery rates will depend on ongoing asset liquidation results and legal proceedings. Payment Platform Integration and Security The selected payment platforms—BitGo, Kraken, and Payoneer—provide distinct advantages for this large-scale distribution. BitGo offers institutional-grade cryptocurrency custody and transfer capabilities. Kraken provides established exchange infrastructure for digital asset distributions. Payoneer facilitates traditional fiat currency transfers for creditors preferring conventional banking channels. This multi-platform approach accommodates diverse creditor preferences and geographical requirements. Security measures for the distribution process include: Multi-signature authorization for all major transfers Blockchain monitoring for cryptocurrency distributions Bank-grade encryption for fiat transactions Identity verification protocols matching bankruptcy claim documentation Transaction limits to prevent systemic risks These security protocols ensure funds reach legitimate creditors while minimizing fraud risks. The trust has coordinated extensively with each platform to establish customized distribution procedures. Creditors should monitor their designated accounts for incoming transfers following the March 31 distribution date. Any discrepancies should be reported through established bankruptcy claim channels. Market Impact and Industry Implications The FTX repayment announcement carries significant implications for cryptocurrency markets and regulatory perspectives. Market observers note several potential effects: First, the distribution may increase cryptocurrency market liquidity as creditors receive previously frozen assets. Some recipients may choose to reinvest in digital assets, while others might withdraw funds entirely. Second, the successful distribution could improve institutional confidence in cryptocurrency bankruptcy proceedings. This precedent demonstrates that even catastrophic failures can follow orderly resolution processes. Third, regulatory bodies may reference this case when developing future frameworks for exchange insolvencies. Industry analysts emphasize that the FTX case represents a turning point for cryptocurrency regulation and investor protection. The relatively rapid asset recovery compared to traditional financial bankruptcies suggests cryptocurrency’s transparent nature can facilitate faster resolutions. However, the case also highlights the need for stronger safeguards before failures occur. Regulatory discussions now focus on preventing similar collapses through enhanced oversight and operational requirements. Creditor Experience and Communication The FTX Recovery Trust has established multiple communication channels to keep creditors informed throughout the distribution process. These include dedicated email updates, a secure online portal for claim management, and periodic court filings detailing progress. Creditors have received specific instructions regarding payment platform selection and verification requirements. The trust emphasizes that all communications will originate from official channels to prevent phishing attempts. Creditors should note several important considerations: Distribution amounts vary based on claim size and classification Tax implications differ by jurisdiction and should be reviewed with professionals Future distributions may occur as additional assets are liquidated Legal proceedings continue regarding certain contested assets Documentation requirements must be maintained for potential audits The trust has allocated resources to address creditor inquiries through designated support channels. Response times may vary due to the volume of claims, but systematic processing ensures equitable treatment. Creditors experiencing technical issues with payment platforms should contact those services directly, as the trust coordinates with but does not operate the distribution infrastructure. Conclusion The March 31 FTX creditor repayment of $2.2 billion represents a historic milestone in cryptocurrency bankruptcy proceedings. This distribution demonstrates that even catastrophic exchange failures can follow orderly resolution processes benefiting affected parties. The structured approach through multiple payment platforms ensures secure and efficient fund transfers to verified creditors. As additional distributions follow throughout 2025, the FTX case will continue shaping cryptocurrency regulation, investor protection standards, and industry recovery protocols. The successful execution of this creditor repayment reinforces the importance of transparent bankruptcy proceedings in maintaining market integrity. FAQs Q1: When will creditors receive their FTX repayment funds? The initial $2.2 billion distribution begins March 31, 2025, with funds typically arriving within one to three business days through BitGo, Kraken, or Payoneer, depending on creditor selection. Q2: Will there be additional FTX creditor repayments after March 31? Yes, the FTX Recovery Trust has scheduled additional repayments to preferred shareholders for later in 2025, with potential further distributions as asset recovery continues. Q3: How were the payment platforms selected for FTX creditor distributions? The trust selected BitGo, Kraken, and Payoneer based on their security protocols, geographical coverage, and ability to handle both cryptocurrency and fiat distributions efficiently. Q4: What percentage of their claims will FTX creditors recover? Exact recovery percentages remain uncertain as asset liquidation continues, but the $2.2 billion distribution represents a significant initial recovery, with further distributions anticipated throughout 2025. Q5: How does the FTX bankruptcy repayment compare to other cryptocurrency exchange failures? The FTX repayment timeline appears relatively accelerated compared to cases like Celsius and Voyager, reflecting coordinated international recovery efforts despite the case’s extraordinary complexity and scale. This post Historic FTX Creditor Repayment: $2.2 Billion Distribution Begins March 31 first appeared on BitcoinWorld .