The New York Stock Exchange is building a blockchain-powered trading venue that could let investors buy and sell tokenized stocks and ETFs around the clock — a major step by Wall Street’s largest exchange operator to bring TradFi and crypto closer together. What NYSE is building - Owner Intercontinental Exchange (ICE) plans to combine the NYSE’s existing order‑matching engine with private blockchain networks to enable real‑time trading, funding and settlement of tokenized securities. - The exchange aims to launch the platform later this year, subject to approval from the U.S. Securities and Exchange Commission. - Michael Blaugrund, ICE’s VP of strategic initiatives, says the move is meant to expand investor access and “create new opportunities for retail to participate in the stablecoin‑funded markets that have attracted their attention.” Why it matters for crypto and markets - Tokenized securities are digital representations of stocks or funds recorded on a blockchain rather than held only in traditional brokerage accounts. Supporters say tokenization can deepen liquidity, enable fractional ownership and let people trade U.S. assets at any hour. - By enabling real‑time funding and settlement (rather than the typical T+1 cadence for equities), the venue could eliminate settlement lags and support markets that never close. - ICE is also exploring new clearing systems and working with banks on tokenized deposits so money could move outside standard banking hours — infrastructure that would make truly 24/7 markets more feasible. Regulatory and competitive backdrop - NYSE is in active talks with the SEC; regulators’ response will be closely watched as exchanges and crypto firms press for clearer rules around tokenized assets. - The effort places NYSE in direct competition with Nasdaq, which in September petitioned regulators to allow tokenized versions of stocks on its public exchange under the same execution and disclosure rules as the underlying shares (and labeled as tokenized assets). - Separately, NYSE’s Arca venue has already pushed to extend trading hours to 22 hours on weekdays; that proposal received initial SEC signoff in February, contingent on market data feed upgrades. Risks and adoption hurdles - Skeptics note that tokenization won’t eliminate core market risks tied to lending, leverage and volatility. Operational and systemic concerns remain — and broad adoption hinges on winning over regulators, institutional investors and other market participants. - The use of private blockchains, the role of stablecoins in funding trades, and how securities are legally defined, issued and settled will all be subject to scrutiny. Bottom line If approved, the NYSE’s blockchain trading venue would be one of the most consequential moves by a major U.S. exchange to embed tokenization into Wall Street infrastructure — a concrete step toward markets that operate around the clock and tighter integration between traditional finance and crypto rails. Read more AI-generated news on: undefined/news

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