TL;DR:
- NYSE signed a memorandum of understanding with Securitize to develop a tokenized securities platform that will operate 24/7.
- Securitize will become the NYSE’s first digital transfer agent, with the ability to issue stocks and ETFs as tokens on the blockchain.
- The total value of tokenized equities surpassed $1 billion on March 10, with monthly transfer volume reaching $2.5 billion.
The New York Stock Exchange (NYSE) signed a memorandum of understanding with Securitize, a platform specialized in real-world asset tokenization, to jointly develop the infrastructure for a tokenized securities market that will operate around the clock, seven days a week. The agreement was announced by Intercontinental Exchange (ICE).
Under the terms of the MoU, Securitize will assume the role of the NYSE’s first digital transfer agent. That function will allow it to issue and manage company shares and exchange-traded funds (ETFs) as native tokens on the blockchain. Both companies also plan to establish operational, regulatory and technological standards for the issuance of digital securities.
ICE had presented on January 19 a plan for the Digital Trading Platform, a platform designed to support instant settlement, stablecoin financing and on-chain settlement. The platform contemplates both tokenized shares fungible with traditional securities and instruments issued natively in digital format, preserving dividend rights and shareholder governance.
NYSE: The Rise of Tokenization on Wall Street
Institutional adoption of tokenization is accelerating. Securitize has a track record in the market: the firm participated in the launch of a BlackRock tokenized fund. Lynn Martin, president of NYSE Group, noted that any new infrastructure must preserve the trust, transparency and protections that investors expect from markets.
The NYSE’s direct competitors are moving in the same direction. Nasdaq obtained SEC regulatory approval to launch a tokenized equity pilot program and established an alliance with Kraken to connect those securities with decentralized finance networks. The SEC, for its part, has begun to open dialogue with the industry: Hester Peirce, commissioner of the agency, publicly urged companies exploring tokenization to engage directly with regulators.
The Numbers Behind the Market
The total value of tokenized equities surpassed $1 billion on March 10, according to RWA.xyz. Over the past 30 days, the number of holders grew 16% to 193,140, and monthly transfer volume increased 45% to $2.5 billion. Even so, tokenized equities represent only the sixth largest segment within the $26 billion locked in tokenized real-world assets, trailing Treasury debt and commodities.
