NYSE Moves Forward with Tokenized Stocks via DTC Pilot Program
The New York Stock Exchange has put forth a request for a rule change to the U.S. Securities and Exchange Commission, aimed at facilitating the trading of tokenized versions of qualifying securities on its platform.
Summary
- NYSE aims to permit the trading of tokenized securities alongside traditional shares within a unified exchange order book.
- Tokenized assets must retain their original ticker, CUSIP, rights, and privileges similar to their conventional counterparts.
- Clearing and settlement processes will continue through the DTC, ensuring tokenized trading fits within recognized market frameworks.
This filing is part of a larger effort by major exchanges to integrate blockchain-based settlement within regulated market infrastructures.
The SEC notice reveals that NYSE submitted the proposed rule change on April 9. This change would enact Rule 7.50 and amend various exchange regulations to support the trading of securities in tokenized form during a pilot program run by the Depository Trust Company.
The DTC pilot is expected to run for three years, according to a no-action letter from the SEC issued in December 2025. The SEC published the NYSE notice on April 17, with public feedback requested by May 13.
Tokenized shares would retain equivalent rights
The proposal stipulates that tokenized securities must be equivalent to their traditional variants. They are required to have the same CUSIP number, ticker, rights, and privileges as the original security.
The exchange indicated that tokenized securities will trade on the same order book and follow the same execution priority rules. The filing ensures that holders of tokenized securities will enjoy the same rights related to dividends, voting, and residual assets as those holding traditional shares.
Moreover, the NYSE proposal does not call for a separate crypto-specific venue for stock trading. Instead, eligible members would place orders through the exchange and direct instructions for DTC to clear and settle the transaction in a tokenized format.
The filing maintains that tokenized securities could trade within the existing national market system. NYSE is also “evaluating various tokenization methods” and may submit additional proposals if it opts for a strategy different from the DTC model.
Broader tokenization initiative reaches SEC
The NYSE’s filing aligns with similar moves from Nasdaq, which recently updated its rules to allow trading of tokenized securities during the DTC pilot. The NYSE proposal references Nasdaq’s approved rule framework as its basis.
Additionally, a separate filing from NYSE Arca has attracted attention in crypto markets by mentioning XRP, Bitcoin, Ethereum, and Solana as assets potentially compliant with proposed commodity trust listing criteria. Crypto.news noted that the XRP filing does not formally categorize XRP as a commodity under federal law.
These two filings underscore a growing interest in tokenization that spans both traditional securities and crypto-related assets. Nevertheless, the NYSE tokenized securities rule primarily focuses on regulated equities and exchange-traded products, rather than newly minted digital tokens.