24X National Exchange filed a proposed rule change with the U.S. Securities and Exchange Commission that would allow eligible members to trade certain U.S. equities in tokenized form. The filing would permit participating members to clear and settle trades in Russell 1000 stocks and major-index exchange-traded funds using tokenized representations of those securities under the Depository Trust Company's tokenization pilot program. The proposal represents the latest step in a broader effort by U.S. market infrastructure providers to bring tokenization into regulated securities markets rather than relying on separate crypto-native venues.
24X Positions Tokenization Within Extended Trading Strategy
24X became the first national securities exchange approved by the SEC to offer 23-hour weekday trading of U.S. equities. The tokenization proposal extends that strategy by seeking to modernize the clearing and settlement process for eligible securities through infrastructure being developed by the Depository Trust Company.
The filing covers securities included in the Russell 1000 Index as well as major-index ETFs. Those instruments account for a substantial share of trading activity in U.S. equity markets.
Dmitri Galinov, Founder and Chief Executive Officer of 24X, said: "As the first national exchange approved by the SEC to offer 23-hour weekday trading of U.S. equities, expanding access for traders around the world is core to 24X's mission. Facilitating the trading of U.S. equities in tokenized form on 24X will advance these efforts, and we look forward to engaging with the SEC through the review process. In the interim, we continue to prepare to expand from 16/5 to 23/5 trading on 24X later this year."
Nasdaq and NYSE Filed Similar Tokenized Securities Proposals
Earlier this year, Nasdaq received SEC approval for a comparable framework allowing tokenized securities to be traded and settled through the Depository Trust Company's pilot environment. The approval established one of the first regulatory pathways for tokenized representations of publicly traded U.S. securities within traditional exchange infrastructure.
NYSE later submitted its own filing seeking permission to support tokenized securities under the same framework. Together, the filings suggest that major exchange operators increasingly view tokenization as a market infrastructure development rather than a crypto-specific product.
The proposals seek to integrate blockchain-based representations of securities into established regulatory and operational frameworks rather than replacing traditional infrastructure.
DTCC Announced Production Timeline for Tokenized Securities Services
The proposals from Nasdaq, NYSE, and now 24X are tied to a broader initiative led by the Depository Trust & Clearing Corporation and its Depository Trust Company subsidiary.
DTCC announced earlier this year that it plans to begin production activity for tokenized securities services in 2026. The organization currently safeguards more than $114 trillion in securities and processes transactions valued in the quadrillions of dollars annually.
By incorporating tokenized securities into existing clearing and settlement systems, DTCC aims to reduce operational friction while maintaining regulatory oversight, investor protections, and established market safeguards. The framework allows regulated market participants to interact with tokenized securities through systems they already use.
Exchanges Pursue Tokenization as Market Structure Development
Recent developments suggest that operating hours and settlement architecture are becoming additional competitive battlegrounds for exchanges. The rise of overnight trading has already changed expectations around market access. Nasdaq has announced plans for expanded trading schedules, while brokerage firms increasingly market around-the-clock access as a differentiating feature.
If approved, exchanges could eventually offer securities trading that combines extended hours, digital asset-style infrastructure, and traditional regulatory protections. The proposal highlights how tokenization is evolving from a concept discussed primarily within the crypto industry into a market structure initiative being pursued by regulated exchanges, clearing organizations, and securities regulators.
FAQ
What did 24X National Exchange file with the SEC?
24X National Exchange filed a proposed rule change with the U.S. Securities and Exchange Commission that would allow eligible members to trade Russell 1000 stocks and major-index exchange-traded funds in tokenized form under the Depository Trust Company's tokenization pilot program.
When does DTCC plan to begin production activity for tokenized securities services?
DTCC announced earlier this year that it plans to begin production activity for tokenized securities services in 2026. The organization currently safeguards more than $114 trillion in securities and processes transactions valued in the quadrillions of dollars annually.
Which other exchanges have filed similar tokenized securities proposals?
Earlier this year, Nasdaq received SEC approval for a comparable framework allowing tokenized securities to be traded and settled through the Depository Trust Company's pilot environment. NYSE later submitted its own filing seeking permission to support tokenized securities under the same framework.
