A US exchange is pushing forward with plans to bringtokenized equities into regulated trading, as 24X National Exchange filed aproposal with the Securities and Exchange Commission. The move would allowcertain stocks and exchange-traded funds to trade in tokenized form, markinganother step in testing blockchain-based infrastructure in traditional markets.Proposal Targets Tokenized Stocks and ETFs24X submitted the rule change on June 11, seeking to updateits trading rules to support tokenized securities. The proposal outlines howthe exchange would handle trading, access, and order routing for theseinstruments.Tokenized equities on a venue like 24X could extendpractical access to US stocks beyond the traditional cash session. That mattersmost for international retail traders who want to trade U.S. names in theirlocal time zones without relying on offshore or lightly regulated platforms.For many retail traders, the front‑endexperience may look similar: a broker or app interface that routes orders intotokenized versions of familiar tickers. The bigger change happens behind thescenes in how trades clear, settle and are recorded, which could eventuallysupport faster settlement and more seamless movement of assets betweenplatforms and wallets. If approved, eligible members of the exchange would be ableto trade tokenized versions of Russell 1000 stocks and major index ETFs. Tradeswould clear and settle through the Depository Trust Company, which is running apilot program for tokenized securities.The initiative follows a similar move by Nasdaq, whichalready received approval for its own tokenization-related proposal. Thissuggests that US exchanges are starting to test how tokenized assets can fitwithin existing market structures.Linked to DTC Pilot ProgramThe plan depends on a pilot run by the Depository TrustCompany under an SEC no-action letter issued in 2025. The program allowstokenized versions of traditional securities to be issued and processed withoutchanging their legal status.This means the assets remain standard equities, while thetokenized layer aims to improve how trades are recorded and settled. The pilotstructure allows regulators and market participants to test the model beforeany broader rollout.24X said the initiative supports its goal of expandingaccess to US markets. “Facilitating the trading of U.S. equities in tokenizedform on 24X will advance these efforts,” said Founder and CEO Dmitri Galinov,adding that the exchange will engage with the SEC during the review process.The filing comes as 24X also prepares to extend its tradinghours. The exchange plans to move from 16-hour sessions to 23-hour weekdaytrading later this year, aiming to serve global participants more effectively.Nasdaq and the NYSE have already moved in the same direction, so 24X is stepping into a pattern that is now becoming a playbook rather than a novelty. Nasdaq secured SEC approval earlier this year for a rule change allowing certain Russell 1000 stocks and index ETFs to trade and settle in tokenized form via the DTC pilot, while the NYSE has filed its own rule change to enable tokenized securities trading on its main order book under the same infrastructure. Taken together, those moves show that tokenization is shifting from experiment to incremental market-structure upgrade on the incumbent venues, with DTC acting as the common plumbing.This article was written by Jared Kirui at www.financemagnates.com.