NYSE Joins Tokenization Race With New Digital Trading Venue

CN
3 hours ago

According to the announcement published Monday, the New York Stock Exchange (NYSE), part of Intercontinental Exchange (ICE), is developing a digital platform designed to support trading and onchain settlement of tokenized securities, subject to regulatory approval.

The proposed platform would allow round-the-clock trading of U.S.-listed equities and exchange-traded funds, fractional share access, and near-instant settlement through tokenized capital rather than traditional multi-day clearing cycles. In short, Wall Street wants fewer waiting periods and more immediacy.

At the technical level, the platform pairs the NYSE’s Pillar matching engine with blockchain-based post-trade infrastructure, supporting multiple chains for settlement and custody. Orders could be sized in dollar terms and funded using stablecoins, adding flexibility without discarding familiar market mechanics.

If approved, the venue would support both tokenized versions of traditionally issued shares and securities natively issued as digital tokens. Token holders would still receive dividends and governance rights, underscoring that this is not a novelty sideline but an extension of existing equity ownership.

NYSE executives framed the move as evolutionary rather than disruptive. “For more than two centuries, the NYSE has transformed the way markets operate,” said NYSE Group’s President Lynn Martin, emphasizing that the initiative aims to blend trust, regulation, and modern technology.

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The effort also fits into ICE’s broader digital strategy, which includes upgrading clearing infrastructure for 24/7 trading and exploring tokenized collateral. ICE is already working with banks such as BNY and Citi to support tokenized deposits across clearinghouses.

For ICE, tokenization is less about chasing trends and more about modernizing plumbing. As Michael Blaugrund, vice president of strategic initiatives at ICE, put it, supporting tokenized securities is a logical step toward operating fully onchain market infrastructure.

“Supporting tokenized securities is a pivotal step in ICE’s strategy to operate on-chain market infrastructure for trading, settlement, custody, and capital formation in the new era of global finance,” Blaugrund remarked.

Whether regulators greenlight the plan will determine how quickly this vision becomes reality. Still, the message is clear: the NYSE wants to bring tokenization inside the velvet rope rather than watch it grow up outside the exchange gates.

  • What is the NYSE developing?
    A regulated platform for trading and onchain settlement of tokenized securities.
  • Will trading be available 24/7?
    Yes, the proposed venue is designed to support round-the-clock trading.
  • Do tokenized shares carry normal shareholder rights?
    Tokenized shareholders would receive dividends and governance rights like traditional holders.
  • Is the platform live today?
    No, it is still subject to regulatory approvals.

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