TL;DR
- 24X National Exchange has filed a proposed SEC rule change tied to tokenized securities trading.
- The proposal would allow eligible securities, including Russell 1000 stocks and certain ETFs, to trade in tokenized form through a DTC pilot program.
- The filing is still a proposal, not an approval or live product, but it shows how traditional equity markets are moving closer to blockchain settlement rails.
24X National Exchange has put another tokenization proposal in front of US regulators, adding to the growing push to bring traditional securities onto blockchain-linked market infrastructure.
The exchange’s proposed rule change, listed as SR-24X-2026-20 in a Federal Register notice, would allow certain securities to trade in tokenized form as part of a Depository Trust Company pilot program. The proposal covers eligible securities such as Russell 1000 stocks and major exchange-traded funds, while preserving the existing market structure around order handling and trading priority.
The important point is that this is not a new crypto token market in the loose sense of the phrase. It is a proposed change to regulated securities trading rules. The filing describes how eligible members could indicate a preference for tokenized settlement while the securities continue to trade on the same book as their traditional counterparts.
How The 24X Tokenized Securities Proposal Works
Under the proposal, tokenized securities would not be treated as a separate class with a different execution priority. Instead, tokenized and traditional versions would trade alongside one another, provided they are fungible. That is an important design choice because it attempts to avoid splitting liquidity between two markets.
Participants that want tokenized settlement would use a digital flag when entering orders and provide wallet information where required. The actual clearing and settlement process would still be tied to DTC’s pilot framework, which is designed to test blockchain-based handling of eligible securities without abandoning the regulated clearing infrastructure that already supports US equity markets.
For crypto markets, this is the kind of development that matters because it moves tokenization out of theory and into the plumbing of traditional finance. The promise is not simply that stocks can be represented on-chain. The more meaningful question is whether regulated market participants can use blockchain rails while maintaining the investor protections, auditability, and settlement discipline expected in public securities markets.
Why It Matters For RWA And Crypto Regulation
Real-world asset tokenization has become one of the more durable crypto narratives because it connects blockchain infrastructure to markets that already have deep liquidity. Tokenized Treasuries, funds, and private credit products have gained traction, but public equities remain a much larger and more sensitive test case.
If proposals like 24X’s advance, they could help define how tokenized versions of mainstream securities are handled in the US. That would be especially important for institutions that want the operational benefits of tokenization without moving into loosely regulated offshore venues.
The filing also comes at a time when regulators are being pushed to clarify the boundary between crypto assets, securities, derivatives, and tokenized representations of existing financial products. A tokenized Russell 1000 stock is not the same thing as an altcoin. It is a representation of an existing security within a regulated framework, and that distinction is central to the proposal.
Still A Proposal, Not A Green Light
The caution here is simple: this filing should not be read as approval. It is a proposed rule change undergoing regulatory review. Until the SEC process is complete, there is no final green light for the market structure described in the filing.
Even so, the direction of travel is clear. Traditional exchanges and infrastructure providers are now actively exploring ways to bring tokenized settlement into regulated markets. That does not mean every proposal will be approved, but it does show that tokenization is becoming a market-structure issue rather than just a crypto-sector talking point.
For investors watching the RWA theme, 24X’s filing is another sign that the next phase of tokenization may be less about speculative tokens and more about making existing financial markets work differently behind the scenes.
This report is based on the Federal Register notice for File No. SR-24X-2026-20.
This article was written by the News Desk and edited by Samuel Rae.
Originally published by Federal Register. at Federal Register
