NYSE Files Application with the SEC for a Significant Rule Change Also Affecting Cryptocurrencies

The New York Stock Exchange (NYSE) has applied to the SEC for a rule change to allow tokenized securities to be traded on the exchange.

According to the application, the New York Stock Exchange aims to allow tokenized versions of eligible stocks and ETFs to be traded under Depository Trust Company’s (DTC) three-year tokenization pilot program.

The proposed regulation requires tokenized securities to have the same CUSIP number, the same ticker symbol, the same rights, and the same privileges as their traditional counterparts. These assets will be traded on the same order book as traditional securities and will be subject to the same rules regarding order priority.

However, the clearing and settlement processes will not be conducted on-chain, but through the existing market infrastructure via DTC. Transactions are planned to be completed within the T+1 clearing cycle.

However, although not officially, a large number of tokenized securities are already being traded in the cryptocurrency market.

*This is not investment advice.