The New York Stock Exchange has filed a proposed rule change with the U.S. Securities and Exchange Commission to allow tokenized versions of certain equities and exchange-traded funds (ETFs) to trade on its platform under a pilot program led by the Depository Trust Company.
The initiative is part of DTC’s three-year tokenization pilot, which explores how blockchain technology can be integrated into traditional financial markets.
Under the proposal, eligible tokenized securities will be designed to mirror their conventional counterparts in every key aspect.
The NYSE filed a proposed rule change with the SEC to allow tokenized versions of eligible equities and ETFs to trade on the exchange under DTC’s three-year tokenization pilot program.
Eligible tokenized securities must share the same CUSIP, ticker, rights and privileges as their traditional counterparts, and will trade on the same order book with the same execution priority, while clearing and settlement remain through DTC on a T+1 basis.
According to the filing, tokenized equities and ETFs must carry the same CUSIP identifier, ticker symbol, and economic rights, including dividends and voting privileges. This ensures that investors holding tokenized versions receive identical treatment to those holding traditional shares.
Importantly, these tokenized instruments will trade on the same order book as their non-tokenized counterparts and will follow the same execution priority rules.
This approach allows tokenized and traditional securities to coexist within the same market structure without creating fragmentation or pricing discrepancies.
Despite the introduction of tokenization, core post-trade processes will remain unchanged. Clearing and settlement will continue to be handled through DTC’s existing infrastructure, with transactions settling on a T+1 basis, consistent with current U.S. market standards.
The proposal highlights a growing effort by established financial institutions to adopt blockchain technology while preserving regulatory compliance and operational stability.
Rather than replacing traditional systems, the initiative integrates tokenization as an additional layer within the existing framework.
If approved, the move could mark a significant step toward broader adoption of tokenized financial assets on regulated exchanges, offering improved efficiency while maintaining the reliability and protections of traditional market infrastructure.
