TL;DR
- The NYSE spent the past year testing Avalanche’s technology and evaluating how to integrate it into its settlement systems.
- Charley Cooper, president of Ava Labs, revealed a close working relationship with ICE, NYSE’s parent company, but did not confirm that Avalanche has been selected.
- Michael Blaugrund, of ICE, stated that Avalanche “meets many of those requirements” the firm evaluates in blockchain platforms.
The NYSE has spent twelve months testing the technology of the Avalanche network for its securities tokenization plans, according to Charley Cooper, president of Ava Labs, during the Avalanche Summit held in New York.
Cooper noted that the world’s most important stock exchange not only examined the technical aspects of the blockchain, but also subjected Ava Labs to questions about the project’s economics and its understanding of the exchange’s commercial needs.
NYSE Bets on Tokenization
The NYSE announced in January of this year that it was developing a platform for the onchain trading and settlement of U.S. stocks and exchange-traded funds, subject to regulatory approval. The proposed system combines the Pillar order-matching engine with post-trade infrastructure based on blockchain, and is designed to support multiple networks in the settlement and custody processes.
Cooper stated that there is a “close” working relationship between both parties, although he was careful to not confirm that Avalanche has been chosen as the project’s blockchain. “I’ll let the NYSE folks speak publicly about where they are in the whole process,” he said during his remarks.
At the same event, Michael Blaugrund, Head of Strategic Initiatives at ICE, shared the stage with Cooper and confirmed that the firm is “very involved” with the Ava Labs team as it evaluates different blockchain platforms. “Avalanche meets many of those requirements for us,” Blaugrund stated, without committing to a definitive choice.
In August, ICE agreed to work with tZERO as a design partner for the tokenized securities market infrastructure, although it has not yet designated a specific blockchain for the platform.
More Trading Hours on the Way
Cooper also projected that some venues will begin offering around-the-clock trading on business days within a year, though he indicated that it remains unclear whether that will include major international exchanges. He also mentioned that the SEC published on Thursday an innovation exemption allowing certain onchain trading of tokenized stocks, a key regulatory milestone that could accelerate the sector’s plans.
