24X National Exchange has submitted a proposed rule change to the U.S. Securities and Exchange Commission (SEC) that would permit eligible members to trade certain U.S. equities in tokenized form under the Depository Trust Company's tokenization pilot program. If approved, participating members could clear and settle Russell 1000 stocks and major-index exchange-traded funds using tokenized representations of those securities.
The filing is the latest step in a broader effort by U.S. market infrastructure providers to bring tokenization into regulated securities markets rather than relying on separate crypto-native venues. It comes as 24X prepares to expand its operating schedule from 16 hours a day, five days a week to 23-hour weekday trading later this year.
24X's Vision Extends Beyond Extended Hours
24X became the first national securities exchange approved by the SEC to offer 23-hour weekday trading of U.S. equities, positioning extended market access as a response to growing demand from investors and institutions across multiple time zones. The tokenization proposal extends that strategy by modernizing the clearing and settlement process for eligible securities through infrastructure being developed by DTCC.
Dmitri Galinov, Founder and CEO of 24X, said: "As the first national exchange approved by the SEC to offer 23-hour weekday trading of U.S. equities, expanding access for traders around the world is core to 24X's mission. Facilitating the trading of U.S. equities in tokenized form on 24X will advance these efforts, and we look forward to engaging with the SEC through the review process."
The filing covers securities included in the Russell 1000 Index as well as major-index ETFs. These instruments account for a substantial share of trading activity in U.S. equity markets and would provide the pilot with highly liquid securities if approved. The move follows similar efforts by larger exchange operators: earlier this year, Nasdaq received SEC approval for a comparable framework allowing tokenized securities to be traded and settled through DTCC's pilot environment, and NYSE later submitted its own filing. Together, these actions suggest that major exchange operators increasingly view tokenization as a market infrastructure evolution rather than a crypto-specific product.
DTCC's Tokenization Initiative Moves Toward Production
The proposals from Nasdaq, NYSE, and now 24X are tied to a broader initiative led by DTCC and its DTC subsidiary. DTCC announced earlier this year that it plans to begin production activity for tokenized securities services in 2026. The organization safeguards more than $114 trillion in securities and processes transactions valued in the quadrillions of dollars annually, making it one of the most important pieces of financial market infrastructure globally.
By incorporating tokenized securities into existing clearing and settlement systems, DTCC aims to reduce operational friction while maintaining regulatory oversight, investor protections, and established market safeguards. This approach differs from many earlier tokenization projects that attempted to build entirely new ecosystems outside traditional infrastructure. Instead, DTCC's framework allows regulated market participants to interact with tokenized securities through systems they already use, potentially lowering adoption barriers.
Why This Matters for Market Structure
The significance of the 24X filing extends beyond tokenization itself. For years, exchanges competed primarily through listings, liquidity, technology performance, and transaction costs. Recent developments show that operating hours and settlement architecture are becoming additional competitive battlegrounds. The rise of overnight trading has already changed expectations around market access; Nasdaq has announced plans for expanded trading schedules, while brokerage firms increasingly market around-the-clock access as a differentiating feature. Tokenization introduces another layer of competition. If approved, exchanges could eventually offer securities trading that combines extended hours, digital asset-style infrastructure, and traditional regulatory protections.
The proposal also highlights how tokenization is evolving from a concept discussed primarily within the crypto industry into a market structure initiative being pursued by regulated exchanges, clearing organizations, and securities regulators. Whether the SEC approves the filing remains uncertain, but the direction of travel is becoming clearer. Multiple exchanges are now pursuing tokenized securities frameworks, DTCC is moving toward production deployment, and the infrastructure supporting U.S. equity markets is beginning to incorporate technology until recently associated largely with digital asset markets. If approved, 24X would become another participant in what is rapidly becoming one of the most closely watched developments in securities market infrastructure.