The New York Stock Exchange (NYSE) has filed a rule change with the Securities and Exchange Commission (SEC) to allow tokenized securities to be traded directly on its main order book, aligning closely with a similar move by Nasdaq. The proposal builds on earlier regulatory developments enabling the Depository Trust Company (DTC) to issue tokenized representations of securities. Under the framework, tokenized and conventional shares would trade interchangeably, covering major equities such as those in the Russell 1000 and key ETFs, while continuing to settle through existing post-trade infrastructure.

Operationally, the model mirrors Nasdaq’s approach. Tokenized and traditional shares share the same CUSIP, execution priority, and settlement cycle (T+1), with tokenization occurring after trade execution. Market participants can indicate a preference for tokenized settlement at order entry, including specifying blockchain and wallet details, but transactions revert seamlessly to conventional settlement if any issues arise. NYSE has also clarified that eligible tokenized securities must convey full economic and governance rights, including dividends, voting, and residual claims, thereby excluding earlier “wrapper” structures that lacked direct ownership characteristics.

This filing represents one component of NYSE’s broader tokenization strategy. In parallel, it is developing a dedicated digital trading platform aimed at enabling continuous trading and near-instant settlement, potentially using stablecoins. Similar to Nasdaq’s dual-track approach, this reflects a transition phase where traditional infrastructure is adapted for tokenized assets while new, blockchain-native venues are built. The current rule change ensures compatibility with existing market structures, while future developments are likely to shape how tokenized securities evolve at scale.