Overview
- 24X National Exchange filed a proposed rule change, SR-24X-2026-20, asking the SEC to permit eligible Russell 1000 stocks and major index ETFs to trade in tokenized form under the DTC pilot; the filing is under SEC review and is not approved.
- The proposal would let tokenized and traditional versions of the same security trade on one unified order book to preserve execution priority and keep liquidity fungible.
- Market participants choosing tokenized settlement would mark orders with a digital flag and provide wallet information while clearing and settlement remain tied to the DTC pilot framework set up under a 2025 SEC no-action letter.
- Exchanges say benefits include faster settlement, easier movement of assets between platforms, and extended trading hours for global investors, but technical and operational issues such as voting, dividend handling, and fee allocation still need to be resolved.
- The filing follows Nasdaq’s earlier SEC tokenization approval and the NYSE’s related rule activity, showing growing exchange momentum for tokenized settlement even as final regulatory decisions and public review are pending.