The New York Stock Exchange (NYSE) on Monday unveiled plans to introduce a blockchain-powered trading venue for tokenized stocks and exchange-traded funds (ETFs) later this year, operating 24/7. The platform will combine NYSE's matching technology with private blockchain networks to enable real-time trading of tokenized securities, featuring instant settlement, dollar-denominated orders, and stablecoin-based funding.
Round-the-Clock Trading and Instant Settlement
Unlike traditional T+1 settlement, the new venue allows investors to trade at any hour with immediate fund availability. Orders can be placed in dollar amounts, removing the constraint of whole shares. Stablecoins serve as a primary funding method, reducing reliance on conventional bank transfers. "Supporting tokenized securities is a pivotal step in ICE's strategy to operate onchain market infrastructure for trading, settlement, custody, and capital formation in the new era of global finance," said Michael Blaugrund, ICE vice president of strategic initiatives.
Tokenized Shares Fungible with Traditional Securities
The platform will support two types of tokens: tokenized shares interchangeable with traditionally issued securities, and natively issued digital securities. Holders of tokenized shares will enjoy the same rights as traditional shareholders, including dividends and governance participation. The venue is designed to align with established market structure principles, offering non-discriminatory access to all qualified broker-dealers.
Regulatory Approval and Industry Competition
NYSE is currently seeking regulatory approval for the 24/7 platform and aims to launch later this year. ICE is also working with BNY and Citi to integrate tokenized deposits into its clearinghouses, enabling clearing members to transfer and manage funds outside traditional banking hours. The move comes as rival Nasdaq revealed similar plans in December to facilitate near-round-the-clock trading for stocks and ETPs, reflecting the growing demand for continuous global market access.