New York Stock Exchange unveils tokenized share trading platform

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The New York Stock Exchange (NYSE) is seeking regulatory approval for a new digital platform with tokenized shares traded on-chain 24/7 and instant settlements. Orders will be sized in USD, and there are plans for account funding via stablecoins.

Intercontinental Exchange (ICE), NYSE’s parent company since 2013, has been a pioneer in networked digital trading since its foundation in 2000. It has grown over the years through a series of mergers and acquisitions of prominent exchanges and clearing houses worldwide.

NYSE is the world’s largest exchange by market capitalization, which exceeds $44 trillion as of January 2026.

The announcement doesn’t mean NYSE is converting all securities trading to a tokenized format. The proposed platform will be a new NYSE venue where natively issued digital securities are fungible with traditionally issued securities, as well as tokenized representations of traditional shares.

However, the intention is for all tokenized securities to function in the same way as traditional ones, with holders awarded dividends and governance rights. The platform would “align with established principles for market structure,” with access to digitized shares open to all qualified broker-dealers.

ICE/NYSE did not announce specific details on which stablecoins it might support, nor did it name any existing tokenization process or blockchain network. The company said its design would combine the NYSE’s Pillar matching engine with blockchain-based post-trade systems, which would be capable of supporting multiple chains for settlement and custody.

Demand for tokenization is there, but how should it be done?

Richard Baker, Founder and CEO of Tokenovate, noted there is always demand for better technological infrastructure in markets. Traders want easier access to markets for longer hours, as well as more efficient post-trade services and instant settlements.

“NYSE’s new digital platform reflects how demand for extended trading hours is pushing market infrastructure to evolve, not just at the point of execution but through to settlement and funding as well. Operating a 24/7 market with instant settlement requires post-trade processes that can function continuously, with intraday risk, liquidity, and collateral managed in real time rather than on batch cycles. Tokenization provides a practical way to support that shift by enabling on-chain settlement and funding, while reducing reliance on legacy settlement delays that were designed for limited trading hours.”

Using the FINOS Common Domain Model (CDM) data standard for financial products and events, Novat creates disposable digital tokens that ensure every on-chain action represents a clearly defined contractual obligation. This involves aligning legal contracts, trade data, and settlement workflows in an automated process that reduces settlement times.

While T+2 settlements take days, existing T+1 digital systems have reduced that to just hours. Systems like Novat make instant, T+0 settlements possible, freeing up liquidity that was previously locked up in custodial chains and reconciliation delays.

NYSE announcement meets cautious optimism

Blockchain proponents welcomed ICE/NYSE’s announcement as a major step forward, though some commentators expressed skepticism. One said the tokenized platform proposal “reads” like vaporware and yet another corporate fantasy masquerading as innovation, and questioned the need for such a platform in a world where decentralized finance (DeFi) already exists.

It’s understandable that some have become jaded by years of large corporations announcing blockchain-based pilots, only to abandon them later quietly. This could be due to several factors, including past limitations on blockchain network scalability, cost, and data throughput. It’s also possible that the regulatory environment and traders themselves were not yet ready to embrace the new technology.

However, there has been a marked shift in acceptance of stablecoins (and blockchain technology in general) in recent years. “Bitcoin” is a mainstream word, and digital assets are no longer seen as a passing fad.

That said, most well-known blockchain networks still suffer from scalability and cost issues, and this could inhibit further growth until developers and regulators are prepared to explore all options available. BSV exists as the world’s fastest, cheapest, and most scalable blockchain, with all transactions secured by Proof-of-Work (PoW) following the original 2009 Bitcoin protocol.

Another lingering debate is the one between those who prefer open blockchain networks, and those who attempt to build restricted access, proprietary networks with the same functionality. The Internet itself has proven the benefits of open networks for compatibility and broad access, and its open protocol (like BSV’s) has spurred innovation while developing a solid pool of development talent. Markets looking to increase liquidity through new digital efficiencies would be wise to remember this.

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