NYSE seeks approval to list tokenized stocks and ETFs under DTC pilot

The exchange filed a proposed rule change with the U.S. Securities and Exchange Commission (U.S. markets regulator) to permit trading of tokenized versions of eligible equities and ETFs through Depository Trust Company’s (U.S. post-trade infrastructure provider) three-year pilot program.

Summary

NYSE has filed a proposed rule change with the U.S. Securities and Exchange Commission (U.S. markets regulator) to allow tokenized versions of eligible equities and ETFs to trade on the exchange. The filing would place those products within Depository Trust Company’s (U.S. post-trade infrastructure provider) three-year tokenization pilot program. Tokenized securities are blockchain-based representations of traditional financial assets, and the move would extend exchange-trading infrastructure to a format that could modernize how securities are issued, transferred, or settled, subject to regulatory approval.

Terms & Concepts
  • Tokenized securities: Blockchain-based representations of traditional assets such as shares or funds, designed to mirror ownership and trading rights in conventional markets.
  • ETF: Exchange-traded fund, a pooled investment product that trades on an exchange like a stock.
  • Equities: Shares representing ownership in a publicly traded company.