NYSE moves closer to tokenized stocks under DTC pilot
The New York Stock Exchange has filed a rule change with the U.S. Securities and Exchange Commission to allow tokenized versions of eligible securities to trade on its market.
- NYSE wants tokenized securities to trade beside traditional shares on the same exchange order book.
- Eligible tokenized assets must keep the same ticker, CUSIP, rights, and privileges as originals.
- Clearing and settlement would remain through DTC, keeping tokenized trading inside existing market rails now.
The filing adds to a wider push by major exchanges to bring blockchain-based settlement into regulated market systems.
The SEC notice shows that NYSE filed the proposed rule change on April 9. The filing would adopt Rule 7.50 and amend several exchange rules to allow securities to trade in tokenized form during a Depository Trust Company pilot program.
The DTC pilot would run for three years under a December 2025 SEC staff no-action letter. The SEC issued the NYSE notice on April 17, and public comments are due by May 13.
Tokenized shares would keep the same rights
Under the proposal, tokenized securities must remain equal to their traditional versions. They must share the same CUSIP number, ticker, rights, and privileges as the regular security.
The exchange said tokenized securities would trade on the same order book and follow the same execution priority rules. The filing states that a tokenized security must give holders the same rights to dividends, voting, and residual assets as the traditional share.
Moreover, the NYSE proposal does not create a separate crypto-style venue for stock trading. Instead, eligible members would enter orders through the exchange and choose instructions for DTC to clear and settle the trade in tokenized form.
The filing says tokenized securities can trade within the current national market system. NYSE also said it is “assessing various methods of tokenization” and would file new proposals if it chooses another method outside the DTC approach.
Broader tokenization push reaches SEC
NYSE’s filing follows similar movement from Nasdaq, which recently amended its rules to allow tokenized securities trading during the DTC pilot. The NYSE filing says its proposal is based on Nasdaq’s approved rule structure.
A separate NYSE Arca filing also drew attention in crypto markets after naming XRP, Bitcoin, Ethereum, and Solana as assets that could qualify under proposed commodity trust listing standards. Crypto.news reported that the XRP filing does not formally classify XRP as a commodity under federal law.
The two filings point to growing interest in tokenization across both traditional securities and crypto-linked products. However, the NYSE tokenized securities rule focuses on regulated equities and exchange-traded products, not new digital tokens.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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