The New York Stock Exchange is working on a digital platform that would enable investors to trade digital tokens around the clock.
The platform would be separate from the NYSE itself, which operates only on weekdays, and allow for instant settlement of transactions, orders sized in dollar amounts and stablecoin-based funding, NYSE owner Intercontinental Exchange said Monday.
Tokenization uses blockchain technology that powers cryptocurrencies to create digital tokens as stand-ins for things like stocks, bonds, real estate or even fractional ownership of a piece of art that can be traded like crypto by virtually anyone, anywhere at any time. Stablecoins, which are a type of cryptocurrency typically bought and sold for $1, have helped fuel the appetite to tokenize other financial assets.
Assuming it meets regulatory scrutiny, the platform would power a new NYSE venue that would support trading of tokenized versions of company shares, the exchange said.
The development of the platform is part of Intercontinental Exchange’s bid to broaden its transaction clearing capabilities to handle 24/7 trading of tokenized securities and, potentially, the integration of tokenized collateral.
Intercontinental Exchange said it’s working with Citigroup, Bank of New York Mellon and other lenders to support tokenized deposits across the company’s six clearinghouses around the globe.
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