NYSE Develops Tokenised Securities Platform: Pioneering 24/7 Trading and On-Chain Settlement

In a landmark announcement that highlights the rapid intersection of traditional finance and blockchain technology, the New York Stock Exchange (NYSE) — part of Intercontinental Exchange (NYSE: ICE) — has revealed that it is developing a dedicated platform for trading and on-chain settlement of tokenised securities. The initiative forms a central component of ICE’s broader digital strategy to modernise market infrastructure while addressing sustained global demand for continuous, efficient capital markets.

The platform is expected to support 24/7 trading of U.S. equities and ETFs, fractional share ownership, and near-instant settlement through tokenised capital and stablecoin funding — a significant departure from the traditional T+1 settlement cycle common in legacy markets.

Subject to regulatory approvals, the digital venue would create a new NYSE venue where tokenised securities — representing U.S. stocks and exchange-traded funds — can be traded around the clock, combining blockchain-based post-trade settlement systems with the NYSE’s established trading infrastructure.

Why This Matters: The Evolution of Capital Markets

For over two centuries, the NYSE has been a cornerstone of global capital markets. This new tokenised securities platform marks a bold step toward fully on-chain trading and settlement infrastructure, ushering in a generation of digital capital markets meant to complement — rather than replace — traditional systems.

Unlike historical market operations limited by session hours and delayed settlement cycles, the new platform aims to support:

• 24/7 trading of tokenised stocks and ETFs
• Instant settlement of trades via on-chain mechanisms
• Orders sized in dollar denominations rather than share lots
• Fractional share ownership for broader investor accessibility
• Stablecoin funding to bridge liquidity and settlement timing gaps across time zones

This development comes amid increasing investor interest in continuous access to U.S. markets. Regulators and exchanges have been exploring extended trading windows — and in parallel, blockchain-enabled infrastructure offers another path toward around-the-clock activity.

How the Tokenised Securities Platform Works

The planned NYSE tokenised platform will leverage a hybrid trading architecture that combines the exchange’s existing Pillar matching engine with blockchain-based post-trade systems for settlement and custody. This model is designed to support multiple blockchains, offering flexibility and resilience.

Here’s how it differs from traditional market infrastructure:

Blockchain-Enabled Settlement

Instead of the current settlement framework — which typically finalises trades on a next-day basis (T+1) — the new system is expected to use on-chain settlement that can clear trades virtually instantly once executed, reducing counterparty risk and cash drag.

Stablecoin and Tokenised Funding

The platform is expected to support stablecoin-based funding, enabling participants to fund orders using tokenised forms of U.S. dollars. This feature helps bridge the gap between traditional bank currency rails and blockchain settlement environments.

Fractionalised Ownership and Access

Retail and institutional investors alike could benefit from fractional shares — allowing greater diversification with smaller capital amounts, a feature that was harder to implement efficiently in legacy systems.

Integrated Clearing Infrastructure

The platform is part of ICE’s broader digitisation efforts to prepare clearing infrastructure for continuous operations. The exchange is working with major banks — including Bank of New York Mellon and Citibank — to support tokenised deposits across ICE’s worldwide clearinghouses. This effort aims to help clearing members manage funds and margin requirements outside traditional banking hours.

Regulatory Context

Although the platform promises transformative features, its launch remains subject to regulatory approvals — particularly from the U.S. Securities and Exchange Commission (SEC) and other relevant authorities. The NYSE explicitly stated it will seek such approvals before operations begin.

Industry observers note that regulators have become increasingly receptive to conversations around digital asset markets and extended trading frameworks, provided investor protections and market surveillance mechanisms remain robust. However, the regulatory timeline and eventual conditions for market entry are yet to be determined.

Industry Reaction: A Bridge Between TradFi and Blockchain

The NYSE’s announcement has drawn significant attention across both traditional finance and the blockchain community. Experts highlight how tokenisation — which converts ownership rights into digital tokens on a blockchain — can reduce friction, increase market access and open pathways to new product structures without undermining existing investor protections.

Campbell Harvey, a finance professor at Duke University, noted that tokenised stocks represent one of the most practical and promising applications of blockchain technology in public markets.

Moreover, the move aligns with broader market trends — including similar initiatives by Nasdaq, which has also sought regulatory clearance to enable extended trading hours and integrate blockchain into post-trade functions.

Potential Benefits for Investors and Markets

1. Continuous Market Access

One of the most significant advantages is 24/7 trading, which mirrors how many global markets already operate — especially in digital assets. Investors in different time zones would no longer be bound by traditional market hours.

2. Reduced Settlement Risk

With on-chain settlement, trades can be finalised almost instantly, reducing counterparty risks linked to delayed clearance and settlement processes.

3. Wider Accessibility

Fractional ownership and dollar-denominated orders can make U.S. equities and ETFs more accessible to a broader set of investors, including smaller retail participants who might otherwise face barriers to entry.

4. Enhanced Market Efficiency

Automated blockchain settlement layers may streamline back-office processes, reduce manual reconciliation and lower costs associated with post-trade processing.

Challenges and Considerations

Despite the promise of tokenised securities trading, several challenges remain:

• Regulatory Approval: The platform must satisfy rigorous regulatory reviews, which could delay or reshape its final architecture.
• Integration Complexity: Combining legacy trading systems with blockchain technology at scale entails significant technical and operational complexity.
• Market Adoption: Brokers, custodians, and other market participants must be prepared to support tokenised instruments and integrate new settlement workflows.

Conclusion: A New Frontier for NYSE and TradFi

The NYSE’s tokenised securities platform initiative represents a bold step toward blending traditional capital markets with decentralised, blockchain-enabled infrastructure. By enabling 24/7 trading, instant settlement, and innovative funding mechanisms, the exchange is positioning itself for a future in which digital assets and conventional securities markets coexist and complement each other — provided regulatory green lights are obtained and institutional adoption increases.

As this ecosystem develops, the implications for market liquidity, investor access and global trading norms could be profound, signaling a potential shift in how stocks, ETFs and other capital market instruments are traded and settled worldwide.