Catenaa, Monday, January 19, 2025- The New York Stock Exchange said early today that it was developing a platform to trade and settle tokenized securities on-chain, a step that could enable round-the-clock trading of US-listed equities and exchange-traded funds, pending regulatory approval.
The exchange said the system is designed to support continuous trading, fractional share purchases, dollar-based order sizing and near-instant settlement through tokenized capital. Stablecoin-based funding is also expected to be part of the platform’s architecture.
According to the NYSE, the platform will integrate its Pillar matching engine with blockchain-based post-trade infrastructure. It is being built to support multiple blockchains for settlement and custody and would underpin a new NYSE venue dedicated to digital securities.
If regulators approve the proposal, the venue would allow trading in tokenized shares that mirror traditionally issued securities, as well as assets issued natively as digital securities. Investors holding tokenized shares would retain the same dividend entitlements and governance rights as traditional shareholders. Access would be limited to qualified broker-dealers and offered on a non-discriminatory basis.
The initiative forms part of a broader digital strategy at Intercontinental Exchange, the NYSE’s parent company, which is preparing its clearing infrastructure for continuous trading models. ICE said it is working with banks including BNY and Citi to enable tokenized deposits across its clearinghouses, allowing clearing members to manage funds outside standard banking hours and across time zones.
The announcement follows earlier signs that the NYSE has been assessing longer trading hours. In April 2024, the exchange surveyed market participants on demand for 24/7 trading, reflecting rising interest in market structures modeled on cryptocurrency markets.
