24X National Exchange filed a proposed rule change with the SEC this week, seeking permission to let traders buy and sell tokenized versions of Russell 1000 stocks and major ETFs. The filing, labeled SR-24X-2026-20, is not an approval or a live product — it's a formal request for the regulator to sign off on a Depository Trust Company pilot program.
Inside the pilot
Under the plan, tokenized and traditional versions of the same security would trade side by side. The exchange says they'd remain fungible, meaning one could swap into the other without splitting liquidity. Participants who want tokenized settlement would flag that preference with a digital tag and provide wallet info. Behind the scenes, clearing and settlement still run through DTC's pilot framework — the blockchain layer is just the delivery mechanism, not a separate market.
The proposal keeps existing order-handling and trading-priority rules intact. Tokenized securities wouldn't be treated as a new asset class; they're just the same shares settled a different way.
What this means for tokenization
This moves tokenization out of white papers and into the plumbing of regulated finance. Unlike unregulated crypto tokens, these would live inside the same SEC and DTC guardrails as regular stocks. The filing is part of a broader push by traditional exchanges to test blockchain-based settlement without blowing up the current system.
The timing isn't arbitrary. Regulators have been wary of crypto-native tokenization projects that bypass existing market structure. 24X is trying the opposite approach: work within the rules, ask for permission, and keep the SEC in the loop from day one.
What happens next
The SEC now has a comment period and a statutory deadline to approve, disapprove, or extend the review. If greenlit, the pilot would be one of the first instances of tokenized equities trading inside a national exchange's rulebook. The exchange hasn't said when it expects a decision, but the filing kicks off a clock that typically runs 45 to 90 days for a first response.
