TL;DR
- The NYSE is developing a platform for trading and on-chain settlement of tokenized securities, still pending regulatory approval.
- The platform will integrate the NYSE Pillar matching engine with a blockchain-based post-trade system, enabling 24/7 operations, instant settlement, and stablecoin transfers.
- Shareholders will retain dividend and governance rights, and the infrastructure will allow full interoperability between traditional and tokenized securities.
The New York Stock Exchange (NYSE), part of the Intercontinental Exchange (ICE) Group, is developing a platform for on-chain trading and settlement of tokenized securities, pending regulatory approval.
The project will integrate the NYSE Pillar matching engine with a blockchain-based post-trade system, allowing instant settlements and 24/7 trading. Orders can be placed in U.S. dollars, and funds can be transferred via stablecoins.
The new platform will allow trading of tokenized stocks interchangeable with traditionally issued securities and native digital security tokens. Tokenized shareholders will maintain dividend and governance rights equivalent to conventional shareholders. The market structure will ensure non-discriminatory access for all qualified brokers.
The development is part of ICE’s digital strategy, which aims to provide continuous clearing infrastructure and explore the integration of tokenized collateral. To support this, the exchange is collaborating with banks such as BNY Mellon and Citigroup, which will back tokenized deposits within the clearinghouse. This integration will allow clearing members to transfer and manage funds outside traditional banking hours, meet margin obligations, and operate across multiple jurisdictions and time zones.
NYSE Unifies and Modernizes Markets
The initiative modernizes trading mechanisms by combining traditional systems with blockchain technology. Each transaction will be recorded in tokenized form, with instant settlement and on-chain tracking. The NYSE stated that the platform will feature full interoperability between traditional and tokenized securities while maintaining the existing regulatory and custody framework.
The platform is designed to start operations once regulatory approval is received. In the meantime, development will continue to ensure the matching and post-trade systems function fully integrated with blockchain. The NYSE emphasized that the project does not alter the conditions of traditional markets but adds a digital layer with instant trading and settlement of tokenized securities.
The project positions the NYSE as a central player in adopting tokenization technologies, incorporating tools that allow parallel operation of traditional and digital securities. The platform aims to provide the market with the ability to trade, settle, and custody assets more efficiently while maintaining ownership, dividend, and governance standards equivalent to conventionally issued securities
