<div id="readability-page-1"><div><div><p>Written by: Shannon@Jinse Finance</p><p>The NYSE's tokenized stocks are finally coming!</p><p>On May 12, 2026, the U.S. SEC released a document on its website detailing the NYSE's previously submitted proposal to amend the rules on tokenized securities, and notifying the NYSE that the tokenized securities proposal has automatically taken effect.</p><p><img src="https://imageproxy.pbkrs.com/https://img.jinse.com.cn/7465085_watermarknone.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="600" height="53" original-src="https://imageproxy.pbkrs.com/https://img.jinse.com.cn/7465085_watermarknone.png"/><img src="https://imageproxy.pbkrs.com/https://img.jinse.com.cn/7465090_watermarknone.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="600" height="230" original-src="https://imageproxy.pbkrs.com/https://img.jinse.com.cn/7465090_watermarknone.png"/></p><blockquote><p>Effective Date of Proposed Rule Changes and Timing of SEC Action</p><p>The NYSE has submitted proposed rule changes pursuant to Section 19(b)(3)(A) of the U.S. Securities Act and Rule 19b-4(f)(6) thereunder.</p> Because the proposed rule changes (i) do not materially affect investor protection or the public interest; (ii) do not impose any significant burden on competition; and (iii) become effective 30 days after their filing (or a shorter period as specified by the SEC), they are effective under Section 19(b)(3)(A) of the Securities Act and Rule 19b-4(f)(6) thereunder. This is a milestone event in the formal integration of blockchain technology into the mainstream trading infrastructure of traditional U.S. securities exchanges. Background: How did this happen? The appearance of this document was not sudden. The entire policy path is clearly visible: The first step (December 11, 2025) involves the U.S. SEC issuing a No-Action Letter to the Depository Trust Company (DTC), authorizing the DTC to conduct a three-year pilot program for tokenized securities settlement (the &#34;DTC Pilot Program&#34;). The second step (March 2026) involves Nasdaq applying to and receiving approval for similar rules from the SEC, becoming the first major exchange to allow tokenized securities trading. The third step (May 1, 2026) involves NYSE National submitting its own application for this rule change, which is automatically effective upon announcement by the SEC on May 12. The core legal basis for this rule change is Section 19(b)(1) of the Securities Act of 1934. NYSE National added Rule 7.39 and revised Rules 1.1, 7.36, 7.37, and 7.41, constructing a complete framework for tokenized securities trading. Core Content: What exactly does the rule say? What is a &#34;tokenized security&#34;? The document clearly defines it as follows: Tokenized securities are digital representations of securities using distributed ledger or blockchain technology, as opposed to &#34;traditional securities&#34; (which are also digitally represented but do not use blockchain). They essentially represent the same asset, only the underlying technology differs. Which securities can be tokenized for trading? The scope is strictly limited to two types of assets: first, the constituent stocks of the Russell 1000 Index (the top 1000 listed companies by market capitalization in the United States); and second, ETFs that track major indices. These two types of assets are collectively referred to as &#34;DTC-eligible securities.&#34; What conditions must tokenized securities meet to be listed and traded? The document sets strict equivalence requirements: tokenized securities must share the same **CUSIP number** and **trading code** as their corresponding traditional securities; grant holders the exact same **rights** (including equity interests, dividend rights, voting rights, and liquidation distribution rights); and be fully **fungible** in the market. If a tokenized version does not meet these conditions, it will be considered a separate 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 &#34;tokenization flag&#34; when placing an order in the NYSE National system and provide the blockchain type and digital wallet address. The exchange transmits this preference to the DTC after settlement, and the DTC executes the tokenized settlement. If a participant is ineligible, the securities do not meet the requirements, or the wallet is incompatible with the DTC pilot program, the order will be automatically settled in the traditional manner without error or interruption. Which rules remain unchanged? This is one of the most noteworthy parts of the document—the vast majority of existing rules remain **completely unchanged**: All order types and routing strategies apply as usual; tokenized and traditional securities are matched in the **same order book** with the same priority, and the tokenization flag does not affect the order priority; settlement remains **T+1** (next-day settlement); the fee schedule is **undifferentiated** for tokenized and traditional transactions; market data does not differentiate between the two formats; FINRA's market monitoring covers tokenized securities; obvious errors and risk management measures also apply; the proxy voting distribution process remains largely unchanged. In the words of the document, the philosophy behind this change is to &#34;leverage existing structures, participants, and rules,&#34; rather than starting from scratch. Effective Mechanism and Regulatory Safeguards Since this rule change is deemed not to significantly impact investor protection or impose a substantial burden on competition, it will automatically take effect 30 days after submission, pursuant to Section 19(b)(3)(A) of the Securities Exchange Act, without requiring formal SEC approval or a vote. However, the SEC reserves the right to temporarily suspend the rule change and initiate formal approval or rejection proceedings within 60 days of submission, if deemed necessary. The DTC pilot program will last for three years, at which time NYSE National will reassess whether to renew it or submit a new rule proposal. Conclusion: The Historical Significance of This Document This document, while seemingly highly technical, is actually of profound significance and can be understood on three levels: For Wall Street: Blockchain technology has officially entered the core infrastructure of mainstream US securities trading. The Russell 1000 index represents the largest listed companies in the US, and together with major ETFs, this means that the vast majority of trading volume in the market will be settled in tokenized form. For the Regulatory Paradigm: The US SEC has chosen a path of &#34;not creating a separate track&#34;—tokenized securities do not enjoy any exemptions, do not create parallel market structures, and operate entirely within the framework of the existing national market system. This is completely contrary to previous market concerns about &#34;regulatory arbitrage&#34; and provides a reference model for regulatory agencies in other countries. For the Integration of Crypto and Traditional Finance: Combining the Clarity Act currently being pushed forward by the US Congress and the previously passed Genius Bill, this SEC document represents another direction of integration—not crypto entering traditional finance, but traditional finance actively incorporating blockchain technology into its own system. Two paths are advancing simultaneously and will eventually converge at some point. In the document's own words, this change is essentially no different in nature from the shift from par value to decimal pricing for securities and the initial approval of new securities like ETFs—both are technological upgrades to market infrastructure without altering the fundamental rules.</blockquote></div></div></div>

VONE

VONG

<p>The NYSE has officially implemented tokenized securities, marking a significant milestone in integrating blockchain technology into traditional trading. The U.S. SEC announced that the NYSE's proposal for rule changes regarding tokenized stocks has taken effect, allowing trading of digital representations of securities. These tokenized securities must meet strict equivalence requirements with traditional securities and are limited to Russell 1000 stocks and certain ETFs. The trading mechanism remains largely unchanged, ensuring a seamless transition for market participants.</p>

- The U.S. Securities and Exchange Commission has allowed the New York Stock Exchange's proposal for tokenized securities to automatically take effect, marking a significant integration of blockchain technology into mainstream trading.  
- The proposal establishes a framework for trading tokenized securities, defined as digital representations using distributed ledger technology, limited to Russell 1000 stocks and major index-tracking ETFs.  
- This regulatory change is expected to facilitate tokenized settlements without impacting current investor protections, operating within the existing market structure, while increasing the intersection of traditional finance and cryptocurrency.

CoinLive

Vanguard Russell 1000

A historic moment: NYSE officially takes effect, ushering in a new era of tokenized securities.