NYSE Develops Tokenized Securities Trading Platform, Targets On-Chain Settlement
The New York Stock Exchange (NYSE), part of Intercontinental Exchange (ICE), has announced plans to develop a platform for the trading and on-chain settlement of tokenized securities, marking a significant step toward integrating blockchain technology into mainstream capital markets. The exchange said it will seek the necessary regulatory approvals before launching the platform.
The initiative positions the NYSE among a growing number of major financial market infrastructures exploring tokenization as a way to modernise trading, settlement, and post-trade processes while maintaining regulatory standards.
24/7 Trading, Instant Settlement, and Stablecoin Funding
According to ICE, the new digital platform is designed to support tokenized trading experiences, including 24/7 market access, near-instant settlement, orders sized in dollar amounts, and stablecoin-based funding. The system combines the NYSE’s Pillar matching engine with blockchain-based post-trade infrastructure.
The platform will be capable of supporting multiple blockchains for settlement and custody, reflecting growing institutional demand for interoperability rather than reliance on a single network.
Tokenized Shares to Mirror Traditional Securities
Subject to regulatory approval, the platform will underpin a new NYSE venue that supports both:
- Tokenized shares fungible with traditionally issued securities, and
- Natively issued digital securities
Tokenized shareholders will retain dividend entitlements and governance rights, aligning the new model with existing shareholder protections. Distribution will be offered through non-discriminatory access for qualified broker-dealers, preserving established market structure principles. Subject to regulatory approval, the platform will underpin a new NYSE venue that supports both tokenized shares fungible with traditionally issued securities and natively issued digital securities. Tokenized shareholders will retain dividend entitlements and governance rights, aligning the new model with existing shareholder protections. Distribution will be offered through non-discriminatory access for qualified broker-dealers, preserving established market structure principles. This aligns with regulatory guidance emphasizing that tokenized securities must follow existing market rules, as previously highlighted in the SEC’s cautionary statement.
Part of ICE’s Broader Digital Market Infrastructure Strategy
The tokenized securities platform forms part of ICE’s wider digital strategy, which includes preparing clearing infrastructure for 24/7 trading and exploring the integration of tokenized collateral.
ICE is working with banks including BNY and Citi to support tokenized deposits across its clearing houses. The goal is to enable clearing members to transfer funds outside traditional banking hours, manage margin requirements, and operate more efficiently across jurisdictions and time zones.
NYSE Frames Tokenization as Regulated Market Evolution
NYSE President Lynn Martin said the exchange is focused on building fully on-chain solutions within established regulatory frameworks. “For more than two centuries, the NYSE has transformed the way markets operate,” she said, adding that the exchange aims to combine trust, regulatory protections, and advanced technology to meet the demands of digital markets.
ICE Vice President of Strategic Initiatives Michael Blaugrund described tokenized securities as a natural next step in the company’s evolution from analog to digital markets, pointing to on-chain infrastructure as central to future trading, settlement, custody, and capital formation.
Tokenization Moves Closer to Core Market Infrastructure
The NYSE’s move underscores a broader industry shift in which tokenization is increasingly viewed as an extension of existing market infrastructure, rather than a parallel financial system. While regulatory approval remains a key gating factor, the announcement signals that large exchanges are preparing for a future where blockchain-based settlement and traditional capital markets converge.
As major clearing houses, banks, and exchanges explore on-chain capabilities, the focus is shifting from experimentation toward scalable, regulated deployment — a transition that could reshape how securities are issued, traded, and settled globally.
