24X National Exchange has filed a rule change with the Securities and Exchange Commission to list and trade tokenized versions of Russell 1000 stocks and exchange-traded funds. The proposal, submitted this week, would bring digital representations of traditional equities to a regulated national exchange for the first time.
What the filing proposes
The exchange wants to offer tokenized shares of companies in the Russell 1000 index, along with ETFs based on that index. In its filing, 24X said the move could improve liquidity, shorten settlement times, and widen access to equity markets. The tokens would represent ownership in the underlying securities, with trades settling on a blockchain-based system.
How tokenization could change trading
Tokenized stocks are digital assets that track the price of real shares. If approved, the exchange would let investors buy and sell these tokens just like normal stocks, but with faster clearing. The exchange argues this could make markets more efficient and open them up to people who don't use traditional brokerages.
The regulatory hurdle ahead
The SEC must now review the rule change. The agency can approve, reject, or ask for modifications. No timeline for a decision has been set. The filing is public, and the SEC will open a comment period before making a call.
This isn't the first time a US exchange has tried to list tokenized securities. But previous attempts faced regulatory pushback. 24X's proposal is the most detailed yet, covering a broad index of blue-chip stocks.
The exchange says the plan would revolutionize equity markets by blending blockchain efficiency with existing market safeguards. Whether the SEC agrees remains to be seen — but the clock is now running on the agency's review.
