The New York Stock Exchange (NYSE) has announced it has developed a new platform for trading tokenised securities.
The blockchain-based system is designed to enable 24/7 trading of US listed equities and ETFs with real-time settlement of transactions.
The platform will accommodate both tokenised versions of existing securities and digital securities issued directly on chain. Investors will retain traditional governance rights, such as voting, and will be able to receive dividends on trades.
Additionally, the platform integrates tokenised deposits and supports fund transfers outside of regular banking hours, using stablecoins to facilitate transactions, and also introduces options for fractional share purchases.
The platform’s design integrates the Pillar matching engine first launched by NYSE in 2016 with blockchain-based post-trade systems that support settlement and custody across multiple chains.
NYSE is now seeking regulatory approval for the new platform, and as of yet has not provided any further details of when to expect a full-scale launch.
According to NYSE, the development comes as part of a broader digital strategy pursued by parent company Intercontinental Exchange (ICE), which includes “preparing its clearing infrastructure to support 24/7 trading and the potential integration of tokenised collateral”.
The exchange says ICE is now working with the likes of BNY and Citi to support tokenised deposits across its own clearinghouses. BNY, the world’s largest custodian with $57.8 trillion in assets under custody, debuted its own tokenised deposit offering earlier this month targeting tokenised collateral and margin payments, with ICE as an early adopter.
