Key Insights
- NYSE is developing a tokenized securities trading platform.
- The exchange wants to offer investors a full tokenized trading experience starting this year, subject to regulatory approval.
- Traditional exchanges continue to push towards tokenization to enable 24/7 trading.
The New York Stock Exchange (NYSE) has announced it is developing a tokenization platform for stocks and exchange-traded funds (ETFs).
The platform announced on Monday that it will rely on blockchain technology. It will enable on-chain settlements for tokenized securities.
With the announcement, NYSE joins the growing list of traditional financial institutions that are working on tokenization. The exchange plans to seek regulatory approval for the platform.
NYSE to Offer Full Tokenized Trading Experience.
According to the NYSE, its digital platform will offer a full tokenized trading experience. These include 24/7 operations, fractional securities, instant settlement, and stablecoin-based funds.
It stated that the platform combines NYSE’s cutting-edge technical capabilities for matching buyers and sellers with blockchain systems. The platform would support multiple blockchain networks for custody and settlement.
It said:
“Subject to regulatory approvals, the platform will power a new NYSE venue that supports trading of tokenized shares fungible with traditionally issued securities as well as tokens natively issued as digital securities.”
The new platform is part of the broader strategy of the NYSE parent company, Intercontinental Exchange (ICE). ICE is already working with banks to ensure its success. It collaborates with Citibank and BNY Mellon. It supports tokenized deposits across its six clearinghouses.
Speaking on the development, ICE Vice President Michael Blaugrund noted that it highlights the evolution of the NYSE over the years. The exchange has moved from “trading floor, to electronic orderbook, and now blockchain.”
The exchange stated that it is engaging regulators. Its press release did not specify a launch date. The new platform remains without a timeline. However, reports suggest that it could launch as soon as this year.
Traditional Exchanges Target 24/7 Trading for Investors
The NYSE announced that traditional exchanges are pushing to offer 24/7 trading. They aim to be more accessible to investors. Investors want markets to be open all the time.
Calls for round-the-clock trading have gained momentum. Settlements are also part of this push. Many see tokenization as the way to achieve it.
Nasdaq is NYSE’s major competitor. It sought SEC approval last year. It aimed to allow trading of tokenized stocks on its public exchange.
NYSE wants to extend the trading period to 22 hours on weekdays. It plans to do this at its Arca venue. It got preliminary approval in February 2025.
Blaugrund spoke in an interview with Bloomberg. He said the new platform will offer accessibility. He emphasized it will be a new type. Investors will benefit from this accessibility.
He noted that emerging investors want to trade on weekends, something impossible with traditional infrastructure.
He said:
“It allows for new types of investor accessibility, and will create new opportunities for retail to participate in the stablecoin-funded markets that have attracted their attention.”
Blaugrund’s comments align with those of other stakeholders, including BlackRock CEO Larry Fink. Fink has said on multiple occasions that tokenization is the next frontier for transforming the financial industry.
Meanwhile, the SEC has also shown support for tokenization with efforts to support pilot programs. In December, the regulator issued a no-action letter regarding the Depository Trust Company (DTC) tokenization pilot. DTC is a subsidiary of the Depository Trust & Clearing Corporation (DTCC).
The post NYSE Building Blockchain Platform for Tokenized Stocks and ETFs appeared first on The Market Periodical.