The New York Stock Exchange will develop a system to trade tokenized stocks and ETFs with instant settlement.
The New York Stock Exchange is building a new technological infrastructure to enable the trading of stocks and ETFs in digital form on blockchain.
On January 19, NYSE and its parent company, Intercontinental Exchange (ICE), disclosed details of the platform. The system will combine Pillar, the exchange’s existing matching engine, with blockchain-based post-trade infrastructure. The solution will feature multi-chain support for custody and settlement.
The initiative would allow the creation of a new NYSE trading venue dedicated exclusively to digital financial instruments, including stocks and ETFs issued natively in tokenized form. The project remains subject to approval by U.S. regulatory authorities.
One of the key innovations involves the ability to fund and settle transactions in real time using stablecoins, bypassing the current settlement cycle in U.S. equity markets, which takes one business day. The platform would operate continuously, 24 hours a day, seven days a week.
In parallel, the New York Stock Exchange is seeking to extend trading hours to up to 22 hours on weekdays, responding to growing global demand for U.S. equities. In October 2024, NYSE announced its intention to submit a formal request to the Securities and Exchange Commission (SEC) to obtain authorization for extended trading hours.
Nasdaq, the exchange focused on technology stocks, has also signaled similar plans for continuous 24-hour trading on weekdays, according to reports published last March.
The tokenized securities platform is part of ICE’s broader digital strategy, which includes the development of clearing infrastructure, support for continuous trading, and the potential integration of tokenized collateral. ICE is working with banking institutions, including BNY and Citibank, to enable tokenized deposits at its clearing houses. The goal is to allow members to manage liquidity outside traditional banking hours.
“For more than two centuries, the NYSE has transformed the way markets operate,” said Lynn Martin, president at NYSE Group. “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.”
ICE operates six clearing houses worldwide, including the largest clearing house for the energy sector and the leading global clearing house for credit default swaps.
