Hassan Maishera
TL;DR
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The New York Stock Exchange (NYSE) is developing a platform for trading and onchain settlement of tokenized U.S. equities and ETFs.
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Similar to cryptocurrencies, the platform will support 24/7 trading of tokenized securities.
NYSE is Developing a Tokenized Securities Platform
The New York Stock Exchange announced on Monday that it is currently developing a platform for the trading and onchain settlement of tokenized securities.
In its press release, NYSE stated that the platform could support crypto-style 24/7 trading of U.S.-listed equities and exchange-traded funds. However, the launch of the platform is subject to regulatory approval.
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. Tokenized shareholders will participate in traditional shareholder dividends and governance rights. The venue is designed to align with established principles for market structure, with distribution via non-discriminatory access to all qualified broker-dealers. Stablecoin-based funding will also be supported as part of the design, the company said.
The company added that the launch of the tokenized securities platform is one component of ICE’s broader digital strategy, which includes preparing its clearing infrastructure to support 24/7 trading and the potential integration of tokenized collateral.
Currently, ICE is working with banks, including BNY and Citi, to support tokenized deposits across ICE’s clearinghouses to help clearing members transfer and manage money outside of traditional banking hours, meet margin obligations, and accommodate funding requirements across different jurisdictions and time zones.
While commenting on this latest development, Lynn Martin, president of NYSE Group, said,
"For more than two centuries, the NYSE has transformed the way markets operate. We are leading the industry toward fully onchain solutions, grounded in the unmatched protections and high regulatory standards that position us to marry trust with state-of-the-art technology."
ICE has been expanding its presence in the cryptocurrency space. In October, ICE invested $2 billion in Polymarket, the cryptocurrency-based prediction market platform. The deal values Polymarket at $9 billion post-money, marking one of the most significant investments bridging traditional finance and the cryptocurrency industry.
This latest development also comes as the NYSE has previously tossed around the idea of longer trading hours. In April 2024, NYSE’s data analytics team surveyed market participants on the potential for round-the-clock trading, reflecting growing interest in market structures that more closely resemble the always-on model seen in cryptocurrency markets.
