NYSE Seeks SEC Rule Change for Trading Tokenized U.S. Stocks and ETFs

NYSE proposed Rule 7.50 to let eligible securities trade and settle in tokenized form under the DTC pilot program while preserving the same CUSIP, rights structure, and execution priority as traditional shares.

Summary

NYSE proposed Rule 7.50 to allow eligible securities to trade and settle in tokenized form under the Depository Trust Company pilot program. The update adds that tokenized securities would carry the same CUSIP, shareholder rights structure, and execution priority as their traditional counterparts, and market participants could apply a tokenization flag to support onchain clearing and settlement. The existing proposal still centers on eligible U.S. stocks and ETFs, with settlement remaining T+1 under the broader SEC rule change request.

Terms & Concepts
  • Tokenized securities: Traditional financial assets represented in digital token form, designed to mirror the same underlying ownership rights and market treatment as conventional securities.
  • CUSIP: A standardized identifier used to distinguish securities in U.S. markets and support trading, clearing, and settlement processes.
  • T+1 settlement: A settlement cycle where a securities trade is finalized one business day after the transaction date.