U.S. equities continue to trade within fixed market hours as of writing, with standard T+1 settlement still in place across major venues. Against that backdrop, the New York Stock Exchange has announced plans to build an entirely new tokenization platform designed for round-the-clock trading and on-chain settlement of U.S.-listed equities and exchange-traded funds, subject to regulatory approval.
The initiative marks a structural shift rather than an upgrade. NYSE said the platform will operate as a separate venue focused on digital securities, while the existing exchange continues to run traditional market hours and processes.
What does it signal when the world’s largest stock exchange prepares to run two systems in parallel?
A New Venue Built for Digital Securities
According to the announcement, the new platform will support 24/7 trading, instant settlement, and stablecoin-based funding instead of bank wires. The system will allow fractional share purchases and orders sized in dollar terms, aligning equity trading more closely with crypto market mechanics.
The platform combines the NYSE Pillar matching engine with blockchain-based post-trade infrastructure. It will support multiple blockchains for settlement and custody, allowing flexibility across on-chain environments. Unlike tokenization efforts that wrap existing securities, the venue will support assets natively issued as digital securities alongside tokenized versions of traditionally issued shares.
Tokenized shareholders will retain the same dividend rights and governance privileges as traditional holders. Access to the venue will remain open to qualified broker-dealers on a non-discriminatory basis, according to NYSE.
How NYSE’s Approach Differs From Peers
Many financial institutions already explore tokenization, but most efforts focus on digitizing existing assets. DTCC has tested tokenized representations of custodied securities. State Street has worked on tokenized money market funds and ETFs. Nasdaq has amended market rules to accommodate tokenized trading alongside legacy systems.
NYSE’s plan diverges in structure. Instead of adapting existing rails, the exchange aims to launch a new trading venue designed from the ground up for on-chain issuance, trading, and settlement.
That approach places NYSE in closer alignment with digital-native platforms such as Figure’s OPEN and Superstate, which focus on native issuance and on-chain trading.
This distinction matters because venue design shapes how assets move, settle, and remain in custody. Here, custody can reside in wallets rather than centralized depositories, while settlement can occur instantly on-chain.
ICE Expands Its Tokenized Market Strategy
The platform forms part of a broader digital strategy at Intercontinental Exchange, the NYSE’s parent company. ICE is preparing its clearing infrastructure to support continuous trading and tokenized capital flows across time zones.
ICE confirmed it is working with major banks, including BNY and Citi, to enable tokenized deposits across clearinghouses. These tokenized deposits aim to help clearing members manage margin and liquidity outside traditional banking hours.
Lynn Martin, president of NYSE Group, said the exchange is leading the industry toward fully on-chain solutions while maintaining high regulatory standards. Michael Blaugrund, vice president of strategic initiatives at ICE, described tokenized securities as a pivotal step in operating on-chain infrastructure for trading, settlement, custody, and capital formation.
Why Tokenized Equities Change Market Structure
Tokenized equities introduce structural changes rather than cosmetic ones. Settlement can occur on-chain instead of through multi-day clearing cycles. Custody can move into digital wallets rather than centralized clearing entities. Trading can continue without interruption, and capital formation can take place using stablecoins.
NYSE’s announcement follows earlier signals of demand for extended trading hours. In April 2024, the exchange surveyed market participants on the appetite for round-the-clock trading, reflecting growing convergence between traditional markets and crypto-style structures.
Regulatory approval remains the final gate. If granted, NYSE’s dual-track strategy would allow traditional and digital markets to coexist under one umbrella. The question now becomes timing, not intent.
Source: https://coinpaper.com/13892/nyse-announces-new-tokenization-platform-for-on-chain-trading-and-settlement
