The New York Stock Exchange has taken a major step toward blockchain-based market infrastructure with the development of a platform designed for trading and on-chain settlement of tokenized securities. The initiative, announced by NYSE parent company Intercontinental Exchange (ICE), would introduce 24/7 trading, real-time settlement, and stablecoin-funded transactions, subject to regulatory approval.
According to ICE, the platform will combine the NYSE’s Pillar order-matching engine with blockchain-based post-trade systems that support multi-chain settlement and custody. The exchange plans to seek approval from the U.S. Securities and Exchange Commission before launching what it describes as a new NYSE venue for tokenized assets.
The proposal places the NYSE among a growing group of traditional financial institutions that are experimenting with blockchain infrastructure while remaining within established market structures.
A shift toward real-time settlement
If approved, the platform would allow tokenized shares to trade and settle instantly, a departure from the current U.S. equity market standard, which settles trades on the following business day. Orders could be sized in dollar amounts rather than share quantities, and funding would rely on stablecoins rather than traditional cash rails.
Michael Blaugrund, vice president of strategic initiatives at ICE, told Bloomberg that the platform aims to meet investor demand for markets that operate continuously. He said the structure opens “new opportunities for retail to participate in the stablecoin-funded markets that have attracted their attention.”
Tokenized securities on the platform would include shares that are fungible with traditionally issued equities as well as securities issued natively in digital form. ICE said token holders would retain shareholder rights, including dividends and governance participation.
Regulatory approval remains unresolved
Despite the technical progress, the project remains contingent on regulatory approval. ICE confirmed it is in active discussions with the SEC, though no timeline for a decision has been disclosed.
Regulators face unresolved questions around how tokenized securities should be defined, supervised, and settled under existing securities law. These issues include custody standards, disclosure obligations, and the treatment of stablecoins used for funding trades.
The SEC’s response will likely influence how quickly tokenization becomes embedded in U.S. capital markets. Nasdaq submitted a similar request in September, seeking permission to allow tokenized shares to trade on its public exchange under the same rules as conventional equities.
NYSE has already moved cautiously in expanding access. Its Arca equities venue received initial SEC approval in February for 22-hour weekday trading, contingent on upgrades to market data systems.
ICE expands clearing and banking partnerships
The tokenized trading platform forms part of ICE’s broader digital strategy, which includes preparing clearing infrastructure for continuous trading and exploring tokenized collateral.
ICE confirmed it is working with banks, including BNY and Citi, to support tokenized deposits across its clearinghouses. The goal is to allow clearing members to move funds outside traditional banking hours, meet margin requirements, and manage liquidity across time zones.
ICE operates six clearinghouses globally, including the world’s largest energy clearinghouse and the largest clearinghouse for credit default swaps. Any expansion into real-time settlement will require those systems to handle operational risk under near-continuous market conditions.
Early challenges and industry caution
While tokenization has gained momentum across the financial sector, skepticism remains. Critics argue that blockchain infrastructure does not eliminate market risk tied to leverage, liquidity stress, or price volatility.
Operational resilience presents another challenge. Real-time settlement removes the buffer that traditional clearing cycles provide during periods of market stress. Market participants will need robust risk controls to prevent cascading failures.
Even supporters acknowledge adoption will depend on regulatory clarity and institutional confidence. Widespread participation from broker-dealers, custodians, and asset managers remains uncertain until final rules are in place.
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A measured step toward non-stop markets
ICE executives framed the initiative as an evolution rather than a break from traditional finance.
“For more than two centuries, the NYSE has transformed the way markets operate,” said Lynn Martin, president of 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.”
Blaugrund described tokenized securities as “a pivotal step” toward operating on-chain market infrastructure across trading, settlement, custody, and capital formation.
If approved, the NYSE platform would represent one of the most significant moves by a major U.S. exchange toward blockchain-native markets. Whether it becomes a blueprint or remains a controlled experiment will depend on regulatory decisions still ahead.
Roman Zaika
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