- NYSE announces development of a blockchain-powered platform for trading tokenized U.S. equities and ETFs.
- The venue will support 24/7 trading, instant settlement, and dollar-denominated orders.
- ICE collaborates with BNY Mellon and Citigroup to enable tokenized deposits outside traditional banking hours.
- Launch timeline undisclosed; platform requires regulatory approvals.
The New York Stock Exchange (NYSE), part of Intercontinental Exchange (ICE), announced on Monday that it is developing a blockchain-based platform designed for trading and on-chain settlement of tokenized securities.
This move positions the world’s largest stock exchange to offer continuous 24/7 trading of tokenized versions of U.S.-listed stocks and exchange-traded funds (ETFs), alongside natively digital assets.
The architecture integrates NYSE’s existing Pillar matching engine with blockchain post-trade infrastructure capable of supporting multiple settlement networks. Tokenized shares will remain fungible with traditional securities, preserving investor rights to dividends and corporate governance actions.
Additional features include instant settlement, fractional trading to decimal precision, and the potential use of stablecoins for funding. These capabilities aim to address longstanding frictions in equity markets, such as delayed settlement and limited trading hours.
To enable operations across global time zones, ICE is working with major banks including BNY Mellon and Citigroup to support tokenized deposits within its clearinghouses. This infrastructure would facilitate fund transfers and margin management outside conventional banking windows.
While no specific launch date has been provided, the initiative is part of ICE’s broader strategy to modernize clearing systems for extended hours and explore tokenized collateral.
Market observers see the announcement as evidence of growing institutional embrace of blockchain technology. One analyst described tokenized stocks as “the lowest hanging fruit” for integrating distributed ledger benefits into regulated markets.
Nevertheless, successful deployment hinges on obtaining necessary regulatory approvals, highlighting persistent challenges around interoperability, custody standards, and oversight in blending traditional and digital asset frameworks.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
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