SEC Approves NYSE Rule Change to Enable Tokenized Securities Trading

Gate News message, April 18 — The U.S. Securities and Exchange Commission (SEC) has formally approved a rule change proposal from the New York Stock Exchange (NYSE) to create a new trading mechanism for tokenized securities. The proposal, documented as 34-105260, marks a significant step toward integrating traditional finance with blockchain technology.

Under the new “Rule 7.50,” eligible securities can be traded in both traditional and blockchain-based tokenized forms within the Depository Trust & Clearing Corporation (DTCC) pilot program. Tokenized securities will share the same trading code (CUSIP) and ownership structure as traditional shares, ensuring full fungibility between the two forms. Market participants can use a “tokenization flag” when placing orders to execute transactions on the blockchain, while authorized custodians handle technical and operational processes.

Tokenized assets will be subject to the same priority rules as traditional shares and will not experience any disadvantage in trading order. NYSE has also modified its order queuing, routing, and clearing rules to seamlessly integrate tokenized securities into its existing market infrastructure.

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