TL; DR
- 24X National Exchange has filed a proposed SEC rule change related to trading in tokenized securities.
- The proposal would allow eligible securities, including Russell 1000 shares and certain ETFs, to be traded in tokenized form through a DTC pilot program.
- The filing is still a proposal, not an approval or a living product, but shows how traditional stock markets are moving closer to blockchain settlement rails.
24X National Exchange has submitted another tokenization proposal to US regulators, adding to the growing push to bring traditional securities to the 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 be traded in tokenized form as part of a Depository Trust Company pilot program. The proposal covers eligible securities such as Russell 1000 stocks and large exchange-traded funds, while maintaining the existing market structure around order fulfillment and trading priority.
The important point is that this is not a new crypto token market in the loose sense of the word. It is a proposed change to the regulated rules for trading in securities. The filing details how eligible members can 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 side by side, provided they are fungible. This is an important design choice because it attempts to prevent the split of liquidity between two markets.
Participants wanting tokenized settlement would use a digital flag when entering orders and provide wallet information where necessary. The actual clearing and settlement process would still be tied to DTC’s pilot framework, which is designed to test blockchain-based processing of eligible securities without giving up the regulated clearing infrastructure that already supports U.S. equity markets.
For crypto markets, this is the kind of development that matters because it moves tokenization out of theory and into the pipework of traditional finance. The promise is not just that shares can be represented in the chain. The more meaningful question is whether regulated market participants can use blockchain rails while maintaining the investor protection, auditability and settlement discipline expected in public securities markets.
Why it matters for RWA and crypto regulation
Tokenization of real-world assets has become one of the more enduring crypto stories, as it connects blockchain infrastructure to markets that already have deep liquidity. Tokenized Treasuries, funds and private credit products have gained popularity, but public equities remain a much bigger and more sensitive test case.
If proposals like 24X’s move forward, they could help determine 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 venturing into loosely regulated offshore locations.
The filing also comes at a time when regulators are being forced 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 as an altcoin. It is a representation of an existing effect within a regulated framework, and that distinction is central to the proposal.
Still a proposal, no green light
The caveat here is simple: this submission should not be read as an endorsement. It is a proposed rule change currently under regulatory review. Until the SEC process is completed, there is no final green light for the market structure described in the filing.
Yet the direction of travel is clear. Traditional exchanges and infrastructure providers are now actively exploring ways to bring tokenized settlement to regulated markets. That doesn’t mean every proposal will be approved, but it does show that tokenization is becoming a matter of market structure, rather than just a talking point in the crypto sector.
For investors looking at 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 number SR-24X-2026-20.
This article was written by the News Desk and edited by Samuel Rae.