The New York Stock Exchange (NYSE) has announced a partnership with digital asset company Securitize to develop a blockchain-based trading platform that enables 24/7 trading of tokenized securities, including stocks and exchange-traded funds (ETFs). According to the Wall Street Journal, the initiative aims to transform traditional assets into blockchain tokens, supporting near-instant settlement and allowing investors to finance transactions using stablecoins, moving away from the fixed trading hours and slower settlement cycles of conventional markets.
Securitize as First Digital Transfer Agent
Under the agreement, Securitize will serve as NYSE's first "digital transfer agent", responsible for converting traditional stocks and ETFs into blockchain-based tokens. Transfer agents maintain shareholder records, issue certificates, and handle dividend payments. The two companies will also establish a standardized framework for the issuance and management of tokenized securities in compliance with regulatory requirements.
Carlos Domingo, founder and CEO of Securitize, wrote on X: "NYSE intends to work with Securitize as a premier design partner in developing a digital transfer agent program designed to support the on-chain settlement of tokenized securities transactions. We aim to focus on establishing the regulatory, operational, and technological requirements for enterprise-grade tokenized security infrastructure."
Full Shareholder Rights vs Existing Products
Unlike many current tokenized stock offerings that function more like derivatives and lack voting rights or dividends, the NYSE platform will grant investors full shareholder rights, including the right to vote and receive dividends. This design gives token holders legal rights equivalent to those of traditional shareholders, addressing a key criticism of earlier tokenized products.
Competition with Nasdaq
The move comes amid intensifying competition in the tokenized securities space. Nasdaq recently received regulatory approval to support tokenized trading within its existing infrastructure but plans to rely on traditional settlement systems. In contrast, NYSE is building a separate blockchain-native platform with on-chain settlement and 24/7 operation, marking a distinct technological path. Both exchanges are racing to blockchain-ify Wall Street's core infrastructure.
Notably, Intercontinental Exchange (ICE), the parent company of NYSE, has also invested in cryptocurrency exchange OKX at a valuation of $25 billion, further underscoring traditional finance's strategic push into digital assets.
Challenges and Outlook
Despite the promise, tokenized securities have faced challenges including pricing gaps and regulatory uncertainties. NYSE and Securitize plan to address these by working directly with issuers to create native digital securities rather than synthetic versions. Industry leaders view this as a pivotal moment for tokenization, which could reinvent how assets like stocks, bonds, and funds are issued and traded, making markets faster, more transparent, and more accessible.
The platform is currently in the design phase with no specific launch date announced. Once operational, it could become a landmark in the deep integration of blockchain into Wall Street, potentially reshaping the $40 trillion global securities market.