24X filing shows tokenized stocks may stay on Wall Street rails

Tokenized stocks may reach investors through the same Wall Street systems crypto was supposed to bypass. A new 24X National Exchange filing shows how regulated venues are trying to add blockchain-based stock access without changing who controls trading, custody records, or settlement.

The proposal, filed June 11 and published by the SEC in the Federal Register on June 22, would let eligible 24X members trade some equities and exchange-traded products in tokenized form during a Depository Trust Company pilot. Those trades would still run through the national market system, with DTC clearing and settling them based on instructions chosen when orders are entered.

Under the filing, a tokenized share must remain fungible with the traditional version. It must carry the same CUSIP, ticker, rights, and privileges, and trade on the same 24X order book with the same execution priority. If those conditions are not met, it would be treated as a different product.

The token option is also tightly controlled. Members would need eligibility, approved securities, a compatible blockchain, and a registered wallet accepted by DTC. If any of those checks fail, the trade stays in traditional form. The model gives investors tokenized access, but keeps the record layer and most control points inside existing market infrastructure.