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Historic moment: Officially effective, New York Stock Exchange opens a new era of tokenized securities
金色财经_CryptoPatel21 day ago
Written by: Shannon@金财经
New York Stock Exchange tokenized stocks are really coming this time!
On May 12, 2026, the U.S. SEC official website released a document detailing the rule revision proposal for tokenized securities previously submitted by the New York Stock Exchange, and stated that the New York Stock Exchange tokenized securities proposal has automatically taken effect.
U.S. SEC official website documents
Effective date of proposed rule changes and timing of SEC action
The NYSE submitted proposed rule changes pursuant to Section 19(b)(3)(A) of the U.S. Securities Act and Rule 19b-4(f)(6) thereunder. Because the proposed rule changes described above (i) will not significantly affect investor protection or the public interest; (ii) will not impose any significant burden on competition; and (iii) will be effective 30 days after the date of its filing (or such shorter period as the SEC may designate), has become effective pursuant to Section 19(b)(3)(A) of the U.S. Securities Act and Rule 19b-4(f)(6) thereunder.
This is a milestone event for traditional U.S. stock exchanges to formally incorporate blockchain technology into mainstream trading infrastructure.
Background: How did this happen?
The emergence of this document is not sudden. The entire policy path is clearly visible:
In the first step (December 11, 2025), the U.S. SEC staff issued a No-Action Letter to the Depository and Trust Company (DTC), authorizing DTC to carry out a three-year tokenized securities settlement pilot project (the "DTC Pilot Program").
In the second step (March 2026), Nasdaq took the lead in applying to the US SEC and was approved for similar rules, becoming the first major exchange to allow tokenized securities trading.
In the third step (May 1, 2026), NYSE National will follow up and submit this rule change application, and the SEC will issue an announcement on May 12, which will automatically take effect in accordance with the law.
The core legal basis for this rule change is Section 19(b)(1) of the Securities Act of 1934. NYSE National has added Rule 7.39 and revised Rules 1.1, 7.36, 7.37 and 7.41 to build a complete tokenized securities trading framework.
Core content: What do the rules specifically say?
What are "tokenized securities"?
The document clarifies the definition: Tokenized securities are digital representations of securities that utilize distributed ledger or blockchain technology, as opposed to "traditional securities" (which are also digital representations, but do not use blockchain). The two essentially represent the same asset, but the underlying technology is different.
Which securities can be traded tokenized?
The scope is strictly limited to two types of assets: one is the Russell 1000 Index constituent stocks (the top 1,000 listed companies in the United States by market capitalization), and the other is ETFs that track major indexes. These two types of assets are collectively referred to as "DTC eligible securities".
What conditions must be met for tokenized securities to be listed for trading?
The document sets strict equivalence requirements. Tokenized securities must share the same CUSIP number and Transaction Code with corresponding traditional securities; grant holders exactly the same rights (including equity interests, dividend rights, voting rights, liquidation distribution rights); and be completely interchangeable (fungible) in the market.
If the tokenized version does not meet the above conditions, it will be treated as an independent security such as a derivative or depositary receipt, rather than an equivalent.
How does the trading mechanism work?
The operation process is quite simple. DTC eligible participants who wish to settle in tokenized form select a "tokenization flag" when placing an order in the NYSE National system, and provide the blockchain type and digital wallet address. The exchange passes this preference to DTC after delivery, and DTC performs tokenized settlement. If a participant is not qualified, the security is not eligible, or the wallet is not compatible with the DTC pilot, the order will automatically be settled in the traditional way without error reporting.
What rules have not changed?
This is one of the most noteworthy parts of the document - the vast majority of current rules remain completely unchanged:
All order types and routing strategies apply as usual; tokenized and traditional securities are matched with the same priority in the same order book, and the tokenization flag does not affect transaction priority; settlement remains T+1 (next day settlement); the fee schedule does not differentiate between tokenized and traditional transactions; market data does not distinguish between the two forms; FINRA’s market monitoring covers tokenized securities; obvious errors and risk management measures also apply; the proxy voting distribution process remains essentially unchanged.
In the words of the document, the philosophy of this change is to "leverage existing structures, actors and rules" rather than reinvent the wheel.
Effectiveness mechanism and regulatory guarantee
Since this rule change is determined to not significantly affect investor protection and impose no significant burden on competition, in accordance with Section 19(b)(3)(A) of the Securities and Exchange Act, the rule change will automatically take effect 30 days after submission and does not require a formal SEC approval vote.
However, the SEC reserves the right to temporarily suspend the rule change and initiate a formal approval or rejection process if it deems it necessary within 60 days after the document is submitted.
The DTC pilot program will last for three years, at which time NYSE National will re-evaluate whether to renew or submit a new rule plan.
Conclusion: The historical significance of this document
This document may seem very technical, but in fact it is of far-reaching significance and can be understood from three levels:
To Wall Street: Blockchain technology has officially entered the core infrastructure of mainstream securities trading in the United States. The Russell 1000 index represents the largest publicly traded companies in the United States, which combined with major ETFs means that the vast majority of trading volume in the market will be able to be settled in tokenized form.
Regulatory paradigm: The U.S. SEC has chosen a path of "no separate track" - tokenized securities do not enjoy any exemptions, do not create a parallel market structure, and operate entirely within the framework of the current national market system. This is diametrically opposed to the "regulatory arbitrage" that was previously feared by the market, and provides a reference model for regulatory agencies in other countries.
Integration of encryption and traditional finance: Combined with the Clarity Act being advanced by the U.S. Congress and the Genius Act that has been passed before, this SEC document represents integration in another direction—not that encryption enters traditional finance, but that traditional finance actively incorporates blockchain technology into its own system. Both paths are advancing simultaneously and will eventually meet at some intersection.
In the document's own words, the nature of this change is essentially the same as when securities were changed from face value to decimal quotation, and when new securities such as ETFs were approved for the first time - both were technical upgrades to the market infrastructure without changing the basic rules.
