NYSE plans 24/7 digital platform for trading tokenised shares
Separate venue to allow instant settlement, stablecoin funding ICE works with Citi, BNY Mellon on tokenised deposits
NEW YORK: The New York Stock Exchange(NYSE) is developing a digital platform that would allow investors to trade digital tokens around the clock, expanding trading beyond traditional weekday hours.
The platform will operate separately from the NYSE, which currently runs only on weekdays, and will support instant settlement of transactions, orders sized in dollar amounts and funding through stablecoins, NYSE owner Intercontinental Exchange said on Monday.
Tokenisation uses blockchain technology to create digital tokens representing assets such as stocks, bonds, real estate or fractional ownership in artwork, enabling them to be traded in a manner similar to cryptocurrencies. Stablecoins, typically traded at a value of $1, have driven growing interest in tokenising other financial assets.
Regulatory approval key to launch
Intercontinental Exchange said that, subject to regulatory scrutiny, the platform would support a new NYSE trading venue for tokenised versions of company shares.
The initiative is part of ICE’s broader effort to expand its clearing and settlement capabilities to support 24/7 trading of tokenised securities and potentially integrate tokenised collateral into its systems.
Global clearinghouses to support tokenised deposits
ICE said it is working with Citigroup, Bank of New York Mellon and other lenders to support tokenised deposits across its six clearinghouses worldwide.
