Regular troops enter! The New York exchange announces the development of a tokenized US stock and ETF platform, aiming for 24/7 trading

New York Stock Exchange announces development of blockchain platform, to implement tokenized US stocks and ETFs with 24-hour trading support. The plan combines private chain technology with tokenized deposits, aiming to achieve real-time settlement and improve financial efficiency.

NYSE to launch tokenized securities platform supporting round-the-clock trading

The New York Stock Exchange (NYSE) announced last night (1/19) that it is developing a blockchain-based digital platform to provide trading and on-chain settlement services for tokenized US stocks and index ETFs, expected to launch later this year. If approved by regulators, it will break the traditional stock market trading hours, enabling “24/7 trading” similar to the cryptocurrency market.

NYX will not adopt public blockchains like Ethereum but is expected to use a private blockchain network, integrating its existing Pillar matching engine and blockchain backend infrastructure to build the platform.

The new digital platform is expected to support multiple innovative features, including 24-hour trading, real-time settlement, order placement in USD amounts (supporting fractional shares), and the ability to use stablecoins for fund management.

NYX emphasizes that the new platform’s goal is to support “tokenized securities” that will hold the same rights as traditional securities. This means that holders of tokenized stocks will still enjoy dividend distribution rights and voting rights in corporate governance.

The platform design will be compatible with two types of assets: the first being tokenized stocks that can circulate with traditional issued securities, and the second being securities issued natively in digital form.

Image source: NYSE official website NYSE to launch tokenized securities platform supporting round-the-clock trading

NYSE parent company ICE collaborates with banks to promote tokenized deposits

The NYSE’s tokenized securities platform plan is part of its parent company Intercontinental Exchange (ICE)'s digital strategy.

ICE Vice President of Strategy Michael Blaugrund stated that supporting tokenized securities is a key step for the group to move towards on-chain operations in trading, settlement, custody, and capital formation, symbolizing a new era for global finance.

To improve related infrastructure, ICE is working with major banks such as BNY Mellon and Citigroup to promote support for ICE Clear’s tokenized deposits.

Tokenized deposits allow clearing members to flexibly transfer funds and manage margin requirements outside traditional banking hours, accommodating different jurisdictions and time zones.

Further reading:
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Growing demand for 24/7 US stock trading, blockchain can solve efficiency issues

Blockchain technology is shifting from speculative hype to institutional-level implementation. Traditional market operators are testing blockchain infrastructure in an attempt to address long-standing efficiency problems in stock markets.

Duke University finance professor Campbell Harvey stated that tokenization is not just a passing trend but a practical tool to solve real problems, with tokenized stocks being the most achievable goal at this stage.

Besides NYSE, its competitor Nasdaq was also reported at the end of last year to be seeking regulatory approval to launch a 23-hour, five-day-a-week stock trading service to cope with the increasingly globalized financial markets and investor behaviors.

Related reports:
US stocks may go fully on-chain? SEC plans to open up trading platforms for tokenized stocks, Nasdaq also applies