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The New York Stock Exchange (NYSE) has announced plans to develop a new trading platform that utilizes blockchain technology to facilitate 24/7 trading of tokenized U.S. equities and exchange-traded funds (ETFs).
The initiative, which is currently pending regulatory approval, aims to modernize traditional market structures by enabling round-the-clock access, instant settlement, and stablecoin-based funding.
Key Details
According to the exchange, the proposed venue will combine the NYSEâs existing âPillarâ matching engine with blockchain-based post-trade infrastructure. This setup is designed to support real-time tokenized securities trading on private blockchain networks.
Key features of the platform include:
- 24/7 Operations: Addressing the demand for continuous global markets.
- Instant Settlement: Utilizing on-chain technology for immediate transaction finality.
- Dollar-Denominated Orders: Allowing for fractional share purchases sized in specific dollar amounts.
- Stablecoin Funding: Supporting stablecoins as a funding mechanism for trades.
The exchange clarified that the platform is designed to be blockchain-agnostic, supporting multiple chains for settlement and custody. If approved, the venue would handle both assets natively issued as digital securities and tokenized shares that are fungible with traditionally issued securities.
Lynn Martin, President of NYSE Group, stated that the move represents an industry shift toward on-chain solutions:
âFor more than two centuries, the NYSE has transformed the way markets operate. 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.â
Shareholder Rights
The NYSE emphasized that tokenized securities on the platform will retain the same rights as traditional stocks.
- Token holders will maintain standard governance privileges and dividend rights, with access to the platform provided to qualified broker-dealers on a non-discriminatory basis.
Broader Digital Strategy
The development is part of a wider digital asset strategy by the Intercontinental Exchange (ICE), the NYSEâs parent company. ICE is reportedly working to prepare its clearing infrastructure to support round-the-clock markets.
- This includes collaborations with major financial institutions such as BNY and Citi to enable tokenized deposits across clearinghouses.
- This functionality aims to allow clearing members to manage funds and meet margin requirements outside of traditional banking hours and across different time zones.
This article is published on BitPinas: NYSE to Launch 24/7 Blockchain-Powered Platform for Tokenized Stocks and ETFs
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