NYSE Taps Avalanche to Settle Its Planned Tokenized Stock Platform - Yahoo Finance
The New York Stock Exchange is using Avalanche blockchain technology to power the infrastructure for its upcoming tokenized securities platform, marking a significant shift of Wall Street's core operations onto public blockchains.
The platform, announced Monday, will allow 24/7 trading, clearing and settlement of tokenized securities, subject to regulatory approval. Running on Avalanche, it aims to bring the clearing of tokenized equities onchain at institutional scale, addressing the plumbing that finalizes trades rather than just wrapping individual products in tokens.
Wall Street's Blockchain Shift
Tokenization has become one of Wall Street's most pursued trends, but most efforts have focused on individual products rather than the market machinery itself. The NYSE's move is notable because it puts a blockchain underneath the clearing and settlement layer.
Competing Approaches
The NYSE separately tapped Blockchain.com to reach crypto investors with tokenized stocks and ETFs, while ICE and crypto exchange OKX are planning a 24/7 tokenized stock venue under an SEC exemption. However, the OKX-ICE effort has faced resistance, with every Magnificent Seven stock, including Apple and Meta, opting out, joined by 67 other companies.
Morgan Stanley has also moved to tokenize securities, as research shows appetite for tokenized stocks is real but uneven. An IMF study found they show genuine demand yet remain volatile and illiquid, suggesting the infrastructure may be arriving faster than the markets to fill it.
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