NYSE files with SEC to allow tokenized stocks and ETFs on its exchange!

The New York Stock Exchange has submitted a proposed rule change to the SEC that would permit tokenized versions of eligible equities and ETFs to trade directly on the exchange, operating under DTC's three-year tokenization pilot program. Each tokenized security must carry the same CUSIP, ticker, and shareholder rights as its traditional counterpart — no second-class digital twin, just a different form factor on the same infrastructure.

Critically, tokenized and conventional shares would share a single order book with identical execution priority, while clearing and settlement continue through DTC on a T+1 basis. That design choice removes the fragmentation risk that has dogged earlier tokenization proposals and signals the NYSE is treating this as a structural upgrade, not a sideshow.

If the SEC approves, it would mark the most significant step yet toward native on-chain settlement…