NYSE proposes tokenized stocks and ETFs in DTC pilot

NYSE proposes trading tokenized equities and ETFs in a DTC pilot, ensuring identical rights and T+1 settlement. The SEC is reviewing the plan and seeking public input.

The New York Stock Exchange (NYSE) has proposed a rule change to the U.S. Securities and Exchange Commission (SEC) to allow trading of tokenized versions of eligible equities and exchange-traded funds (ETFs) alongside traditional shares. This initiative is part of a three-year pilot program under the Depository Trust Company (DTC). Tokenized securities would maintain the same CUSIP, ticker, rights, privileges, dividends, and voting power as their traditional counterparts. Clearing and settlement would continue through DTC on a T+1 basis, ensuring compatibility with existing market infrastructure. The proposal introduces Rule 7.50 for Tokenized Securities and amends other rules to support digital assets. The SEC is currently reviewing the framework and seeking public feedback. Participation in the pilot is limited to member firms in the DTC program, aiming to integrate blockchain technology into regulated markets while preserving investor protections and operational consistency.