NYSE Plans Private‑Blockchain Platform for 24/7 Tokenized Stock Trading
New York, Jan. 19 – The New York Stock Exchange (NYSE) announced that it is developing a digital venue that will allow the continuous trading of tokenized equities and exchange‑traded funds (ETFs). The initiative, presented in a press release from Intercontinental Exchange (ICE), marks the first step of a broader digital transformation effort by the world’s largest equities market.
What the NYSE is building
The NYSE’s forthcoming platform will integrate its existing order‑matching infrastructure with private‑blockchain networks. While technical specifics remain under wraps, the design is intended to issue, settle, and transfer tokenized securities on a permissioned ledger, thereby enabling trades at any hour, seven days a week.
ICE officials indicated that the effort is coordinated with major custodians such as BNY Mellon and Citi, which will provide the underlying tokenized deposit services across ICE’s global clearing ecosystem.
Michael Blaugrund, Vice President at ICE, told Bloomberg that the project “represents an evolution of NYSE’s trading capabilities” and could give retail participants immediate access to funds and markets that have traditionally been confined to regular exchange hours. He added that the capability would open “new types of investor accessibility” and foster participation in stablecoin‑funded markets that have attracted considerable attention.
Regulatory outlook
The NYSE is reportedly in discussions with the U.S. Securities and Exchange Commission (SEC) to obtain the necessary approvals for the tokenized‑security venue. Bloomberg cites ICE as aiming to launch the platform later in 2026, pending regulatory clearance.
Industry context
The announcement arrives amid a surge in interest for tokenized equities. According to data compiled by The Defiant, the total market capitalization of tokenized stocks rose from roughly $5 million at the start of 2024 to just over $397 million in January 2025—a year‑over‑year increase of nearly 7,850%.
Competing initiatives are already underway. In December, Nasdaq filed an application with the SEC to extend regular trading to a 24‑hour schedule on weekdays, targeting “rising global demand” for U.S. equities. If approved, Nasdaq’s extended hours would be limited to weekdays, whereas the NYSE’s proposal envisions continuous, seven‑day trading for tokenized products.
Centralized cryptocurrency exchanges such as Coinbase and Kraken have begun offering tokenized stocks, while decentralized platforms like TradeXYZ and Ostium are pushing on‑chain solutions. The market’s rapid expansion reflects broader investor appetite for crypto‑native access to traditional securities, especially among retail participants who seek instantaneous settlement and cross‑border liquidity.
Analysis
Technology integration: By leveraging private blockchains, the NYSE can preserve the institutional control and compliance standards required for securities markets while benefitting from the near‑instant settlement and programmability of distributed ledger technology. Permissioned networks also mitigate some of the regulatory concerns associated with public blockchains, such as anonymity and uncontrolled participation.
Liquidity and market depth: Continuous trading could smooth out liquidity gaps that presently emerge at market open and close. However, the depth of order flow for tokenized assets will depend on adoption by market makers, custodians, and retail platforms. Early traction may be limited to tech‑savvy investors already active in the crypto space.
Regulatory risk: The SEC’s stance on tokenized securities remains evolving. While ICE’s collaboration with established custodians signals a willingness to meet existing compliance frameworks, any misstep in token issuance or custody could invite enforcement actions. The agency’s approval timeline will be a key determinant of the platform’s go‑live date.
Competitive dynamics: Nasdaq’s 24‑hour weekday proposal and the growing ecosystem of tokenized‑stock providers create a competitive environment that could accelerate innovation. If multiple venues offer round‑the‑clock trading, market participants may gravitate toward those with the most robust liquidity, lowest fees, and best integration with fiat and stablecoin funding channels.
Key takeaways
- NYSE’s new platform aims to enable 24/7 trading of tokenized stocks and ETFs via private‑blockchain technology.
- The project is part of ICE’s wider digital strategy, involving partnerships with BNY Mellon, Citi, and other clearing‑house participants.
- Regulatory clearance from the SEC is still pending; launch is targeted for later in 2026, contingent on approval.
- Tokenized equity markets have exploded, with total market cap jumping nearly 8,000% year‑over‑year to $397 million.
- Nasdaq is also seeking to extend trading hours, and crypto exchanges (Coinbase, Kraken) plus decentralized venues (TradeXYZ, Ostium) are actively competing for market share.
- If successful, continuous tokenized trading could improve liquidity, reduce settlement times, and broaden retail access, but regulatory and adoption hurdles remain significant.
The NYSE’s move underscores the growing convergence between traditional finance and the decentralized finance ecosystem. As the industry watches the SEC’s response, the next few months will likely shape the future landscape of tokenized securities trading.
Source: https://thedefiant.io/news/tradfi-and-fintech/nyse-to-launch-24-7-tokenized-equity-platform
