The New York Stock Exchange is building a trading platform using blockchain technology to enable round-the-clock trading of tokenized stocks and exchange-traded funds.Executives of the New York Stock Exchange, a subsidiary of the Intercontinental Exchange Group, revealed that the exchange plans to combine existing buyer-seller matching technology with a private blockchain network to provide real-time trading support for tokenized securities. The new digital trading platform is expected to go online later this year, subject to regulatory approval.
Michael Blaugrund, Vice President of Strategic Planning at Intercontinental Exchange, said in an interview: "This marks the completion of the evolution of the New York Stock Exchange's trading capabilities from the trading floor, electronic order books to blockchain technology. The new platform will broaden investors' participation channels and create new opportunities for retail investors to participate in markets that are funded by stablecoins and have attracted widespread attention."
He also pointed out that the New York Stock Exchange is actively communicating with the U.S. Securities and Exchange Commission regarding the operating license of the new platform. Some functions of this digital trading infrastructure can support real-time transfer and settlement of trading funds, which is different from the T+1 settlement mechanism prevalent in the current stock market.
"We believe this platform fits the growing needs of retail investors who want to be able to complete a trade at 5:04 p.m. on a Saturday and use the funds to make another investment at 5:05 p.m. This type of transaction scenario is not possible with traditional stock trading infrastructure," Blauglund said.
The New York Stock Exchange’s plan is reshaping the core aspects of the definition, issuance and settlement of stocks. The implementation effect of relevant measures may determine whether tokenization can truly be integrated into Wall Street’s financial system. The New York Stock Exchange is the largest stock exchange operator in the United States by trading volume.