NYSE develops tokenized securities platform to support 24/7 trading

The New York Stock Exchange said Monday it is developing a platform for the trading and onchain settlement of tokenized securities, a move that could support crypto-style 24/7 trading of U.S.-listed equities and exchange-traded funds, subject to regulatory approval.

According to a press release, the platform will enable features including round-the-clock trading, fractional share purchases, orders sized in dollar amounts, and immediate settlement using tokenized capital. Stablecoin-based funding will also be supported as part of the design, the company said.

The system combines the NYSE’s Pillar matching engine with blockchain-based post-trade infrastructure and is designed to support multiple blockchains for settlement and custody. The exchange said the platform is intended to power a new NYSE venue focused on digital securities.

If approved, the venue would support both tokenized shares that are fungible with traditionally issued securities and assets natively issued as digital securities. Tokenized shareholders would retain the same dividend and governance rights as traditional shareholders, with access provided to qualified broker-dealers on a non-discriminatory basis.

ICE’s tokenization strategy

The tokenized securities platform forms part of a broader digital strategy at Intercontinental Exchange, the NYSE’s parent company, which is preparing its clearing infrastructure to support 24/7 trading.

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 traditional banking hours and meet margin requirements across jurisdictions and time zones.

“For more than two centuries, the NYSE has transformed the way markets operate,” said Lynn Martin, president of NYSE Group. “We are leading the industry toward fully onchain solutions, grounded in the unmatched protections and high regulatory standards that position us to marry trust with state-of-the-art technology.”

The announcement follows earlier signs that the NYSE has been evaluating longer trading hours. In April 2024, the exchange’s data analytics team surveyed market participants on the potential for round-the-clock trading, reflecting growing interest in market structures that more closely resemble the always-on model seen in cryptocurrency markets.

“Since its founding, ICE has propelled markets from analog to digital,” Michael Blaugrund, vice president of strategic initiatives at ICE, said on Monday. “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.”