NYSE picks Avalanche to settle tokenized stocks amid Wall Street's blockchain race - Cryptonews.net
The New York Stock Exchange's upcoming tokenized stock trading platform will use the Avalanche blockchain as its core ledger for clearing and settling trades.
According to a Monday press release, Avalanche will provide the ledger technology to the clearing firm supporting the NYSE-affiliated alternative trading system. The venue plans to support trading and settlement around the clock, pending regulatory approval.
Crucially, Avalanche won't be the only blockchain involved. The platform is designed to support stocks issued on a range of networks, while using Avalanche to record and settle trades.
At the NYSE, we're looking at how blockchain technology can expand what we offer in equities, and we're picking the right technology for each job.
Wall Street's tokenization race
The Avalanche deal adds another piece to the NYSE's tokenized securities plans as Wall Street firms race to build out their blockchain-based infrastructure. Last week, the exchange expanded its network of transfer agents to six firms, adding Broadridge Financial Solutions, Computershare, Equiniti and Superstate to existing partners Securitize and tZERO.
NYSE rival Nasdaq is also developing tokenized stock infrastructure, including a partnership with crypto exchange Kraken's parent company to distribute blockchain-based shares globally. Meanwhile, the Depository Trust and Clearing Corporation launched a tokenization service last month using its private Besu blockchain and the Canton Network.
Another approach is emerging through the Securities and Exchange Commission's innovation exemption, which opens a path for select blockchain-based venues to trade tokenized stocks through automated market makers. One such project involves crypto exchange OKX and Intercontinental Exchange, the NYSE's parent company.
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