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NYSE to Launch 24/7 Blockchain Market for Tokenized Stocks
Key Takeaways
- NYSE is creating a blockchain-powered platform for 24/7 trading of tokenized stocks and ETFs;
- The system will use stablecoins for instant settlement and connect multiple blockchains for custody;
- ICE’s wider plan includes digital clearing, tokenized collateral, and round-the-clock fund transfers.
The New York Stock Exchange (NYSE) is developing a new system that will allow people to trade digital versions of stocks and exchange-traded funds (ETFs) at any time.
The project uses blockchain technology to speed up trade processing and settlement.
The NYSE and its parent company, Intercontinental Exchange (ICE), announced that the platform will combine the exchange’s existing Pillar trading engine with blockchain-based systems for post-trade activity. It will also allow different blockchains to interact for custody and settlement.
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If approved by regulators, the new system will support a trading venue focused on tokenized securities, stocks and ETFs issued digitally on a blockchain.
This new platform fits into ICE’s plan to expand digital market infrastructure. The company is also developing systems for continuous clearing and exploring how tokenized assets could serve as collateral in the future.
To make trading outside regular banking hours easier, ICE is working with banks such as BNY and Citibank on tokenized deposit systems. These would allow funds to move securely between clearinghouses without relying on traditional banking schedules.
Lynn Martin, president of the NYSE Group, said, "For more than two centuries, the NYSE has transformed the way markets operate".
ICE currently operates six clearinghouses worldwide, including those for energy trades and credit default swaps.
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