NYSE EXPLORES 24/7 TRADING MODEL THROUGH TOKENIZED STOCK PLATFORM
The New York Stock Exchange (NYSE) is developing a blockchain-based trading venue that would allow investors to buy and sell tokenized stocks and exchange-traded funds (ETFs) around the clock. The move marks the latest step by Wall Street’s largest exchange toward expanding its presence in digital asset markets.
Owned by Intercontinental Exchange Inc. (ICE), NYSE plans to integrate its existing order-matching technology with private blockchain networks. This setup would enable real-time trading, funding, and settlement of tokenized securities, according to company executives. The exchange aims to launch the platform later this year, subject to approval from the U.S. Securities and Exchange Commission (SEC).
Real-Time Settlement Replaces Traditional Market Delays
Unlike traditional equity markets, where trades typically settle the next business day, the proposed blockchain venue would allow transactions to be funded and settled instantly. This real-time infrastructure is designed to meet growing investor demand for markets that operate without closing hours.
Michael Blaugrund, Vice President of Strategic Initiatives at ICE, told Bloomberg that the initiative opens the door to new forms of investor access. He added that it creates “new opportunities for retail investors to participate in stablecoin-funded markets that have captured their interest.”
What Are Tokenized Securities?
Tokenized securities are digital representations of stocks or funds recorded on a blockchain, rather than held through traditional brokerage accounts. Supporters argue that tokenization can:
- Improve market liquidity
- Enable fractional ownership
- Expand access to U.S. markets by allowing 24/7 trading
These features could make investing more flexible for both retail and global participants.
A Shift That Could Reshape Wall Street Infrastructure
NYSE’s initiative goes beyond extending trading hours. It raises deeper questions about how securities are defined, issued, traded, and settled in a digital environment. These structural changes may determine whether tokenization becomes a core part of Wall Street’s financial plumbing.
As the largest equities exchange operator in the U.S. by trading volume, NYSE’s move could set a powerful precedent for how traditional financial markets adapt to blockchain technology.
SEC Approval Remains the Key Hurdle
NYSE is still seeking regulatory clearance for its proposed blockchain trading venue. According to Michael Blaugrund, the exchange is in active discussions with the U.S. Securities and Exchange Commission (SEC) as it works toward securing permission to operate the platform. The regulator’s response is expected to be closely watched across the financial industry, as both traditional exchanges and digital-asset firms push for clearer rules governing tokenized securities.
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Growing Competition With Nasdaq
The move places NYSE in direct competition with Nasdaq, which in September asked regulators to allow tokenized versions of stocks to trade on its public exchange. Nasdaq proposed that these tokenized securities follow the same execution and disclosure rules as their underlying shares, while also being clearly labeled as tokenized assets to avoid investor confusion.
NYSE’s Broader Push Toward Longer Trading Hours
NYSE has already begun expanding trading availability. Its Arca equities platform has outlined plans to offer trading for 22 hours on weekdays, a proposal that received initial SEC approval in February, pending upgrades to market data systems. These steps signal a gradual shift toward extended—and potentially continuous—market access.
Bridging Traditional Markets and Blockchain Infrastructure
The proposed digital venue could mark another step toward near-continuous or nonstop trading while helping connect traditional financial markets with blockchain-based infrastructure. ICE is also exploring new clearing systems to support 24/7 trading and is working with banks on tokenized deposits, which could allow funds to move outside normal banking hours.
Risks Remain Despite Technological Advances
Despite the promise of tokenization, skeptics warn that while the technology may evolve, core risks tied to lending, leverage, and market volatility remain unchanged. They note that widespread adoption will depend on gaining the confidence of regulators, institutional investors, and market participants who remain cautious about operational and systemic risks.
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A Potential Milestone for Wall Street
If approved, NYSE’s blockchain-based venue would represent one of the most significant steps yet by a major U.S. exchange to bring tokenized securities into mainstream financial markets. The move could push Wall Street closer to a future where markets operate around the clock.
