just now
The New York Stock Exchange has announced the development of a platform for trading and on-chain settlement of tokenised securities, subject to regulatory approvals.
The digital platform will enable 24/7 operations, instant settlement, orders sized in dollar amounts, and stablecoin-based funding. Its design combines the NYSE's Pillar matching engine with blockchain-based post-trade systems, including the capability to support multiple chains for settlement and custody.
Subject to regulatory approvals, the platform will power a new NYSE venue that supports trading of tokenised shares fungible with traditionally issued securities as well as tokens natively issued as digital securities. Tokenised shareholders will participate in traditional shareholder dividends and governance rights. The venue is designed to align with established principles for market structure, with distribution via non-discriminatory access to all qualified broker-dealers.
The launch of the NYSE's tokenised securities platform is one component of Intercontinental Exchange's broader digital strategy, which includes preparing its clearing infrastructure to support 24/7 trading and the potential integration of tokenised collateral. Intercontinental Exchange is now working with banks including BNY (NYSE: BK) and Citi (NYSE: C) to support tokenised deposits across Intercontinental Exchange's clearinghouses to help clearing members transfer and manage money outside of traditional banking hours, meet margin obligations, and accommodate funding requirements over different jurisdictions and time zones.
Lynn Martin, President, NYSE Group
Lynn Martin, President, NYSE Group, said:
"For more than two centuries, the NYSE has transformed the way markets operate. We are leading the industry towards 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."
Intercontinental Exchange is the parent company of the NYSE and operator of six clearing houses around the world including the world's largest energy clearing house and the world's largest clearing house for credit default swaps.
Michael Blaugrund, Vice President of Strategic Initiatives, Intercontinental Exchange
Michael Blaugrund, Vice President of Strategic Initiatives, Intercontinental Exchange, said:
"Since its founding, ICE has propelled markets from analogue to digital. Supporting tokenised 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."
Intercontinental Exchange (NYSE: ICE) is a Fortune 500 company that designs, builds, and operates digital networks. The company provides financial technology and data services across major asset classes.
Intercontinental Exchange's futures, equity, and options exchanges and clearing houses include the New York Stock Exchange. The company offers markets to trade and clear energy and environmental products, and provides fixed income, data services and execution capabilities. At ICE Mortgage Technology, the company operates in U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship.
Found this interesting? Become a member of LiquidityFinder and get daily industry news direct to your inbox — join here: https://liquidityfinder.com/join
