The New York Stock Exchange (NYSE), owned by Intercontinental Exchange (ICE), has announced a strategic partnership with tokenization specialist Securitize to design and build its planned Digital Trading Platform. According to a press release, the two firms have signed a memorandum of understanding, with Securitize serving as a design partner focused on the role of transfer agents in a blockchain-based system.
Securitize, which is backed by major asset managers including BlackRock and Ark Invest and is registered with the SEC as a transfer agent, is expected to be among the first firms eligible to mint tokenized versions of stocks and ETFs on the new platform, pending regulatory approvals. The company's broker-dealer arm could also participate in trading, positioning it across both the issuance and market activity of tokenized securities.
The initiative is part of a broader trend where traditional financial giants like NYSE and Nasdaq are accelerating their tokenization efforts. The goal is to integrate blockchain technology into stock trading to enable around-the-clock trading and near-instant settlements, similar to cryptocurrency markets. The platform will feature shares issued and managed as blockchain-based digital tokens with instant settlement and stablecoin payment capabilities.
NYSE Group President Lynn Martin emphasized the importance of maintaining investor trust, stating, "As we explore how tokenization can enhance capital markets, it is critical that new infrastructure is developed in a way that preserves the trust, transparency, and protections investors expect."
This move follows related developments in the space: NYSE-parent ICE recently invested in crypto exchange OKX to develop tokenized stocks and derivatives, while rival Nasdaq has obtained regulatory approval for its own tokenized stock trading framework and partnered with Kraken for global distribution.
