Wall Street Goes Crypto: NYSE Plans 24/7 Tokenized Stock Trading

On Monday, the New York Stock Exchange (NYSE) announced that it is building a new platform for tokenized securities. 

It said that it is doing this to bring the nonstop energy of the crypto space to traditional stocks. If regulators approve, investors could soon be able to trade US equities and ETFs at any hour of the day or night.

The New Tokenized Securities Platform

This upcoming platform reportedly combines the famous Pillar matching engine from the NYSE with brand-new blockchain systems. 

The platform is expected to support both native digital tokens and tokenised versions of traditional shares, which means that a share of one tech company can exist as a digital token on a ledger.

These tokenised securities, being designed this way, make sure that investors keep their usual rights. You would still receive dividends and participate in company votes. 

The only difference is that your ownership is recorded on a blockchain instead of old databases.

Round-the-Clock Trading and Fractional Shares

Another exciting feature of this upcoming platform is the ability to buy stocks in dollar amounts. 

Instead of buying a whole share, investors will now be able to buy a tiny fraction. This makes expensive stocks accessible to everyone, and the tokenised securities platform will also use stablecoins for funding. 

This allows for seamless money transfers, even when traditional banks are closed.

Round-the-clock trading has become important for many investors, and major competitors like Nasdaq are also looking at longer hours. 

On the other hand, Robinhood and Charles Schwab have already started offering extended sessions, and the NYSE wants to lead this change by using a fully on-chain solution.

How ICE is Influencing this Move

Intercontinental Exchange (the parent company of the NYSE) sees this as a major step. They are preparing their entire clearing infrastructure for a 24/7 trading space, and Michael Blaugrund, a top leader at ICE, said this moves markets from analogue to digital. 

However, to make this work, ICE is collaborating with banking giants like BNY and Citi, which will focus on tokenised deposits. These digital deposits help clearing members manage their margin requirements across different time zones. 

In other words, without these tools, 24/7 trading would be difficult to fund. 

Related Reading: Bitwise Chainlink ETF Approved for NYSE Arca Listing

Combining Trust With Blockchain Technology

The NYSE has been involved in the financial markets for over two hundred years. Lynn  Martin (the president of the NYSE Group) believes that the exchange is well-positioned for this. 

They are attempting to marry the high standards of a major exchange with state-of-the-art tech, and this approach is expected to build trust for investors who might be wary of pure crypto platforms.

The exchange, by using tokenised securities, is providing a safer way to use blockchain and every trade will happen under the eyes of regulators. 

This will make sure that the market continues to be fair and transparent for everyone. 

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