NYSE Introduces Blockchain-Based Platform for 24/7 Tokenized Stock Trading

NYSE Launches Platform for Blockchain-Based Tokenized Stocks

The New York Stock Exchange (NYSE) is pioneering a new era of stock trading by developing a platform that facilitates 24/7 trading of tokenized stocks and exchange-traded funds (ETFs). This initiative is part of a broader strategy to revamp market infrastructure through blockchain technology.

The NYSE and its parent company, Intercontinental Exchange (ICE), announced the creation of this new platform, which will integrate the company’s Pillar matching engine with blockchain-based post-trade systems. This includes multi-chain support for custody and settlement, pending regulatory approval.

The proposed platform aims to support a novel NYSE trading venue for tokenized securities, allowing trades to be funded and settled in real time using stablecoins, diverging from the traditional one-day settlement cycle prevalent in US equity markets.

Tokenized stocks are digital representations of traditional stocks on a blockchain ledger, providing investors with benefits such as round-the-clock accessibility and fractional ownership.

The NYSE has expressed interest in extending weekday trading hours to 22 hours to meet the global demand for US equities. In October 2024, it announced plans to file for extended trading with the US Securities and Exchange Commission (SEC).

ICE's Digital Strategy and On-Chain Solutions

The tokenized securities platform is a cornerstone of ICE's comprehensive digital strategy, which encompasses the development of clearing infrastructure and support for continuous trading. It also explores the "potential integration" of tokenized collateral.

ICE is collaborating with financial institutions like BNY and Citibank to facilitate tokenized deposits across its clearinghouses, aiding members in managing funds beyond traditional banking hours.

Lynn Martin, president of NYSE Group, emphasized the company's leadership in advancing fully on-chain solutions, combining trust with cutting-edge technology.

Michael Blaugrund, ICE’s vice president of strategic initiatives, described supporting tokenized securities as a "pivotal step" in the firm's goal to operate "onchain market infrastructure" for trading, settlement, custody, and capital formation in the new financial era.