The New York Stock Exchange (NYSE) has developed a new digital platform for trading and on-chain settlement of tokenised securities, including 24/7 operations, instant settlement, and stablecoin-based funding.
The design combines the exchange’s matching engine with blockchain-based post-trade systems, including the capability to support multiple chains for settlement and custody.
How it works
Subject to regulatory approvals, the platform will power a new NYSE venue that supports trading of tokenised shares fungible with traditionally issued securities as well as tokens natively issued as digital securities. Tokenised shareholders will participate in traditional shareholder dividends and governance rights. The venue is designed to align with established principles for market structure, with distribution via non-discriminatory access to all qualified broker-dealers.
Strategic play
The launch of the NYSE’s tokenized securities platform is one component of ICE’s broader digital strategy, which includes preparing its clearing infrastructure to support 24/7 trading and the potential integration of tokenised collateral.
Michael Blaugrund, vice president of Strategic Initiatives, ICE said: “Supporting tokenized securities is a pivotal step in ICE’s strategy to operate on-chain market infrastructure for trading, settlement, custody, and capital formation in the new era of global finance.”
ICE is now working with banks including BNY and Citi to support tokenised deposits across ICE’s clearinghouses to help clearing members transfer and manage money outside of traditional banking hours, meet margin obligations, and accommodate funding requirements over different jurisdictions and time zones.
