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Home.forex news reportNYSE Turns to Tokenization to Extend Wall Street Beyond Market Hours

NYSE Turns to Tokenization to Extend Wall Street Beyond Market Hours

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The New York Stock Exchange plans to launch a
tokenized securities platform that will enable 24/7 trading in U.S.-listed
equities and ETFs with on-chain settlement and immediate funding.

According to the platform, the initiative extends the exchange’s market model into
blockchain-based infrastructure while keeping traditional shareholder rights
and regulatory safeguards in place.

Part of Intercontinental Exchange, the NYSE has
started developing a platform for trading and on-chain settlement of tokenized
securities and will seek regulatory approvals before launch.

NYSE Plans Tokenized Trading Venue

The planned venue will support tokenized shares that
are fungible with traditionally issued securities, as well as securities issued
directly in token form. Token holders will retain access to dividends and
governance rights under the existing corporate framework.

It combines the NYSE’s Pillar matching engine with
blockchain-based post-trade systems to support continuous, around-the-clock
operations. The platform will allow fractional share trading via
dollar-denominated order sizes and will use stablecoin-based funding, with the
ability to support multiple blockchains for settlement and custody.

The new venue will follow established market structure
principles and will distribute access through qualified broker-dealers on a
non-discriminatory basis.

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The model aims to maintain alignment between the
tokenized venue and existing NYSE markets, limiting liquidity fragmentation
between traditional and on-chain trading.

By keeping tokenized securities fungible with their
conventional counterparts, the exchange seeks to extend trading hours and
settlement options without departing from current standards on investor
protection and oversight.

Part of ICE’s Wider Digital Push

The initiative forms part of a broader digital
strategy at Intercontinental Exchange, which operates six clearing houses
worldwide. ICE is preparing its clearing infrastructure to support 24/7 trading
and to accommodate tokenized collateral in margin and settlement workflows.

ICE is working with banks including BNY and Citi to
support tokenized deposits across its clearinghouses. The effort aims to let
clearing members move funds outside traditional banking hours, meet margin
obligations in different time zones and manage funding across jurisdictions
using tokenized capital.

This article was written by Jared Kirui at www.financemagnates.com.



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