Author: Jae, PANews On the evening of January 19, the New York Stock Exchange, a cornerstone of the global financial system, announced that it is developing a tradingAuthor: Jae, PANews On the evening of January 19, the New York Stock Exchange, a cornerstone of the global financial system, announced that it is developing a trading

Is the NYSE's surprise attack on blockchain technology heralding the "final battle" for tokenized securities?

2026/01/20 16:15

Author: Jae, PANews

On the evening of January 19, the New York Stock Exchange, a cornerstone of the global financial system, announced that it is developing a trading and settlement platform for tokenized securities. This exchange, which has witnessed countless financial booms and busts, has officially decided to connect its trading engine to the digital pulse of blockchain.

This is not merely a technological platform upgrade, but a reshaping of the 200-year-old rules governing securities trading. The entry of the NYSE, the world's largest exchange, signifies that tokenized securities are no longer a solo act for crypto startups, but have become a battleground for mainstream financial infrastructure.

The "atomic" and "real-time" revolution in the crypto market has finally knocked on the door of traditional stock exchanges.

With old money on the blockchain, Wall Street is about to enter an era of 24/7 trading and instant settlement.

The NYSE's planned tokenized securities platform adopts a hybrid architecture of "high-performance matching + on-chain finality" in its technical approach. The core of this design lies in using the existing Pillar matching engine to handle high-frequency order matching, thereby ensuring the fairness and speed of transactions, while migrating the clearing and settlement process to the blockchain, thus enabling 24/7 trading.

The Pillar engine, a core technology of the NYSE, can support millions of transaction requests per second. In tokenized securities platforms, this engine will handle dollar-denominated orders, unlocking the "fractional share trading" feature. By splitting shares that would normally cost thousands of dollars per share into tokens that can be ordered directly in dollars, global retail investors can participate in the allocation of high-value assets with relatively small capital.

It's worth noting that tokenized shareholders also enjoy shareholder dividends and corporate governance rights . The NYSE is decentralizing pricing power, previously held by institutions, to a wider audience. This could significantly alter the investor structure of the US stock market in the coming years.

On the backend, the introduction of blockchain technology aims to solve the long-standing problem of settlement delays in traditional finance. By recording ownership on the blockchain, the tokenized platform will achieve atomic settlement, that is, the instant exchange of funds and assets. This model eliminates the credit risk brought about by the T+1 or T+2 settlement cycle in traditional markets, allowing capital to be put back into use the moment a transaction is completed.

The NYSE also specifically emphasized the " multi-chain support " capabilities of its tokenized securities platform. This statement suggests that the NYSE does not want to be locked into a single technology stack, but rather hopes to connect different liquidity pools by building an interoperable central system. This flexibility is crucial for attracting institutional investors who have already deployed assets on different chains.

In terms of fund settlement, the tokenized securities platform will not only provide stablecoin-based financing, but also has reached in-depth cooperation with Citibank and Bank of New York Mellon to introduce "tokenized deposits".

Settlement of traditional securities transactions relies on the transfer of fiat currency between banking systems, which are typically closed on weekends and at night.

By supporting tokenized deposits, clearing processes can transfer funds in real time outside of traditional banking hours to meet margin obligations. This is crucial for managing funding needs across jurisdictions and time zones. Clearing operations no longer need to maintain large amounts of idle cash buffers to cope with potential market volatility, and capital utilization will be exponentially improved.

Major global exchanges launch digital arms race

The NYSE is not entering this arena alone; it is stepping into an increasingly fierce global digital arms race among exchanges. This war without gunfire is not only taking place on Wall Street in New York, but also in London, Frankfurt, and Singapore.

In September 2025, Nasdaq filed an application with the SEC to integrate tokenized stock trading into its main exchange. Nasdaq opted for a "hybrid model," allowing traders to choose between traditional or tokenized settlement within the same order book. This is a "gentle evolution" approach, similar to opening a new window in an old house.

Related reading: Exchange giant Nasdaq makes its move on the blockchain! It formally applies for tokenized securities trading, reshaping the rules of the game on Wall Street.

In contrast, the NYSE appears poised to build a “new palace,” an independent tokenized securities platform focused on on-chain settlement and 24/7 trading. This represents a more revolutionary “standard reshaping.”

Overall, Nasdaq's strategy is more accommodative, aiming to reduce regulatory hurdles by giving investors more options; while the NYSE's strategy is more aggressive, attempting to directly build a standardized template for the next generation of financial markets.

Meanwhile, the fighting was equally intense on the other side of the Atlantic.

  • The London Stock Exchange: Its DiSH (Digital Clearing House) enables 24/7 cross-border instant settlement by tokenizing commercial bank deposits, thus resolving foreign exchange frictions and credit risks.

  • Deutsche Börse: Its "Horizon 2026" strategy focuses on the D7 digital issuance platform and the DBDX crypto asset trading platform. The D7 platform has achieved a digital securities issuance scale of over 10 billion euros, giving it a first-mover advantage in Europe.

  • Singapore Exchange: Deeply integrated with the Monetary Authority of Singapore (MAS), it is piloting the settlement of government bonds and bills using central bank digital currencies through the "Project Guardian" and "BLOOM" initiatives.

The entry of the NYSE may trigger a major reshuffle of the crypto landscape.

The NYSE's move is like a boulder thrown into a lake, its ripples spreading to every corner of the crypto market and traditional finance. Tokenization platforms will not only change how securities are sold, but may also fundamentally reshape the flow of funds and the narrative logic of the crypto market.

1. Tokenization Project Teams: From "Issuer" to "Distributor"

For native projects like Ondo Finance and Securitize, which are dedicated to bringing traditional securities onto the blockchain, the NYSE's entry is a double-edged sword.

  • Positive effect: A leap in regulatory certainty. Ondo had long faced regulatory investigations from the SEC, which ultimately concluded last December with no charges, but it had previously endured immense compliance pressure. The NYSE's move has transformed "blockchain stock ownership" from a fringe innovation into mainstream consensus, potentially providing it with broader opportunities for institutional cooperation.

  • Competitive Challenges: The NYSE controls the source of asset liquidity. Currently, Ondo mints tokens on-chain using a "1:1 backing" model, with liquidity primarily derived from its agreements with specific brokers. If the NYSE were to directly offer tokenized securities, the project might need to transform from an "asset issuer" to an "asset distributor" or "strategy provider," losing not only asset issuance rights but also facing uncertainty in new business.

2. Cryptocurrency Exchanges: A Two-Way Siphon of Liquidity

The NYSE's support for 24/7 securities trading means the crypto market will face an unprecedentedly strong competitor.

  • Capital outflow: The large amount of stablecoin funds tied up on-chain may be attracted to more stable, dividend-paying US stock assets. High-quality tokenized stocks have clear business revenue models and regulatory protection, which may have a significant "siphoning effect" on altcoins that lack practical use and rely solely on narratives, leading to a liquidity crunch for the latter.

  • User migration: Retail investors with smaller capital originally obtained exposure to US stocks through cryptocurrency exchanges, but now the "fragmented holdings" feature of the NYSE's tokenization platform may directly attract these new users.

3. Liquidity Providers: A Comprehensive Upgrade of Their Strategies

The emergence of 24/7 securities markets requires market makers to have real-time hedging capabilities across markets and assets.

  • Algorithmic Revolution: Traditional NYSE market makers need to be compatible with the AMM (Automated Market Maker) logic in the DeFi field, while DeFi protocols also need to integrate Pillar-style high-frequency matching technology from traditional finance. This technological fusion may give rise to a group of top liquidity providers with "dual" capabilities.

  • Liquidity fragmentation: While the 24/7 model facilitates trading for investors across time zones, it can also lead to extremely fragmented liquidity in the local market late at night or on weekends, resulting in widening bid-ask spreads and abnormal volatility.

The NYSE's announcement of developing a tokenized securities platform represents a "code-level" restructuring of the underlying logic of traditional financial markets. This not only signifies an unlimited extension of trading hours but also a significant leap in capital efficiency.

For the crypto market, this marks a shift from "virtual narratives" to "physical support"; for traditional finance, it represents a "second industrial revolution" after absorbing the advanced productivity of DeFi.

The NYSE's entry into the market undoubtedly sends a clear signal: the digitalization of the financial system is irreversible. For market participants, it is no longer a choice of "whether to participate," but a competition of "how to adapt."

As Lynn Martin, Chairman of the NYSE Group, stated, combining the trust of traditional markets with cutting-edge technology is the only way to reshape the digital future. Wall Street is using blockchain technology to redefine how assets are held and circulated, and those players who can understand and master this "digital context" first will become the leaders of the next generation of capital markets.

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