The New York Stock Exchange, part of Intercontinental Exchange (ICE), announced it is developing a platform to support the trading and on-chain settlement of tokenized securities and will seek regulatory approvals for the initiative.
The planned digital platform is intended to enable tokenized trading features, such as 24/7 operations, near-instant settlement, order sizes in dollars, and stablecoin-based funding. NYSE said the design pairs its Pillar matching engine with blockchain-based post-trade systems, including functionality to support multiple blockchains for settlement and custody.
Subject to regulatory approval, NYSE said the platform would power a new venue for trading fungible tokenized shares that are fungible with traditionally issued securities, as well as natively issued digital tokens. The exchange said tokenized shareholders would retain traditional shareholder benefits, including dividends and governance rights, and that distributions would be structured to ensure non-discriminatory access for qualified broker-dealers.
NYSE framed the effort as part of ICE’s broader digital strategy, which also includes preparing clearing infrastructure for 24/7 trading and exploring the integration of tokenized collateral. ICE said it is working with banks, including BNY and Citi, to support tokenized deposits across ICE clearinghouses, helping clearing members move and manage funds outside traditional banking hours to meet margin obligations and address funding needs across time zones and jurisdictions.
ICE operates multiple exchanges and clearinghouses globally, including major clearing operations in energy and credit default swaps, and said the tokenized securities initiative aligns with its longer-term push toward on-chain market infrastructure spanning trading, settlement, custody, and capital formation.
KEY QUOTES:
“For more than two centuries, the NYSE has transformed the way markets operate. We are leading the industry toward fully on-chain solutions, grounded in the unmatched protections and high regulatory standards that position us to marry trust with state-of-the-art technology. Harnessing our expertise to reinvent market infrastructure is how we’ll meet and shape the demands of a digital future.”
Lynn Martin, President, NYSE Group
“Since its founding, ICE has propelled markets from analog to digital. Supporting tokenized securities is a pivotal step in ICE’s strategy to operate on-chain market infrastructure for trading, settlement, custody, and capital formation in the new era of global finance.”
Michael Blaugrund, Vice President of Strategic Initiatives, ICE
