NYSE to Launch 24-Hour Tokenized Securities Trading Platform

Real-Time Settlement and Fractional Investment Possible
Awaiting Regulatory Approval

The New York Stock Exchange (NYSE), the leading stock exchange in the United States, is moving forward with plans to operate a blockchain-based trading platform that will enable 24-hour stock trading.

On the 6th (local time), traders working at the New York Stock Exchange (NYSE) in New York City, USA. Photo by Getty Images Yonhap News

On the 19th (local time), Intercontinental Exchange (ICE), the parent company of NYSE, announced that NYSE has completed the development of a platform for trading and settlement of tokenized securities and is seeking regulatory approval for the platform.

Tokenized securities refer to securities whose issuance and distribution information is managed using blockchain technology, which is also used for cryptocurrencies. While they are similar to traditional electronic securities in that they are recorded electronically rather than as physical certificates, they differ in that they use decentralized blockchain technology instead of a centralized registration and management system.

With the new platform, investors will be able to trade tokenized securities-exchangeable for stocks or exchange-traded funds (ETFs)-24 hours a day, year-round. In addition, investors will be able to place orders based on monetary amounts, allowing for fractional investment in listed stocks with small amounts of capital, and settlements will occur in real time after trades are executed. Currently, NYSE uses a T+1 settlement system, in which settlement takes place one business day after the trade.

NYSE also explained that users will be able to conduct transactions based on stablecoins on the new platform. Stablecoins are cryptocurrencies whose value is pegged to specific assets such as the US dollar.

Recently, on Wall Street, the use of tokenized securities has been expanding, with major US banks such as Goldman Sachs and Bank of New York Mellon offering institutional investors the ability to invest in money market funds (MMFs) based on tokenized securities.

Michael Bloglund, Vice President of Strategic Initiatives at ICE, stated, "Supporting tokenized securities is a key step in ICE's strategy to operate on-chain market infrastructure for trading, settlement, custody, and capital formation in a new era of global finance."