The New York Stock Exchange (NYSE), part of Intercontinental Exchange, has been working on a platform for trading and on-chain settlement of tokenized securities.
Upcoming capabilities
Planning to seek regulatory approvals, NYSE’s digital platform is set to be able to allow tokenized trading experiences, including 24/7 operations, instant settlement, orders sized in USD, and stablecoin-based funding. The solution’s design merges the NYSE’s Pillar matching engine with blockchain-based post-trade systems, including the ability to support multiple chains for settlement and custody.
Still subject to regulatory approvals, NYSE’s platform is set to enable a new venue that facilitates trading of tokenized shares fungible with traditionally issued securities and tokens natively issued as digital securities. Additionally, tokenized shareholders are set to contribute to traditional shareholder dividends and governance rights. The venue is developed to fall in line with established principles for market structure, with distribution through non-discriminatory access to all qualified broker-dealers.
Furthermore, the rollout of the NYSE’s tokenized securities platform comes as a component of Intercontinental Exchange’s digital strategy, which also includes preparing its clearing infrastructure to facilitate 24/7 trading and the potential integration of tokenized collateral. Intercontinental Exchange is currently collaborating with banks such as BNY and Citi to assist tokenized deposits across its clearinghouses to support members' transfer and handle money outside of traditional banking hours, meet margin demands, and accommodate funding requirements across a range of jurisdictions and time zones.
Commenting on the announcement, Lynn Martin, President, NYSE Group, mentioned the company’s commitment to leading the industry towards fully on-chain solutions, based on the safeguards and regulatory standards that position it to bring together trust and advanced technology.
Michael Blaugrund, Vice President of Strategic Initiatives at Intercontinental Exchange, the parent company of the NYSE, expanded on this, saying that supporting tokenized securities represents a key step in the organisation’s strategy to operate on-chain market infrastructure for trading, settlement, custody, and capital formation in global finance.
