NYSE develops 24/7 blockchain trading platform for tokenized stocks, ETFs

The New York Stock Exchange is building a new platform to trade tokenized stocks and ETFs—part of a massive push to modernize market infrastructure with blockchain-based settlement. This isn't just a side project; it's a full-on evolution of how Wall Street operates.

On Monday, the NYSE and its parent company, Intercontinental Exchange (ICE), announced they're developing a platform with 24/7 trading and instant settlement. It combines ICE's Pillar matching engine with blockchain-based post-trade systems, including multi-chain support for custody and settlement.

Subject to regulatory approval, this platform will underpin a new NYSE trading venue for tokenized securities—stocks and ETFs issued in digital form. Trades could be funded and settled in real time using stablecoins, ditching the one-day settlement cycle currently used in US equity markets.

Tokenized stocks are shares of traditional company stocks minted on a blockchain ledger, giving investors exposure to stock prices with advantages like 24/7 accessibility and fractional ownership.

The NYSE has already sought to extend trading hours to 22 hours on weekdays to meet global demand for US equities. In October 2024, it announced plans to file with the SEC for extended trading. Nasdaq also announced plans for 24-hour weekday trading in March 2025.

The tokenized securities platform is part of ICE's broader digital strategy, which includes building clearing infrastructure, supporting 24/7 trading, and potentially integrating tokenized collateral. ICE is working with banks like BNY and Citibank to support tokenized deposits across its clearinghouses, helping members manage money outside traditional banking hours.

ICE operates six clearing houses worldwide, including the world's largest energy clearing house and credit default swap clearing house. Michael Blaugrund, ICE's vice president of strategic initiatives, called supporting tokenized securities a “pivotal step” in the firm's strategy to operate “onchain market infrastructure for trading, settlement, custody, and capital formation in the new era of global finance.”

This move marks a cautious but significant step toward on-chain markets, blending traditional finance's trust with blockchain's efficiency. Watch this space—Wall Street is getting a tech upgrade.