NYSE develops onchain settlement platform for tokenized securities

The New York Stock Exchange (NYSE) is developing a blockchain-based infrastructure for the onchain settlement of tokenized securities. The platform, overseen by parent company Intercontinental Exchange (ICE), aims to integrate the NYSE’s Pillar matching engine with blockchain-based post-trade systems.

Key features of the proposed platform include 24/7 trading capabilities, instant atomic settlement, fractional shares, and the use of stablecoins for funding. This approach would allow for simultaneous trade execution and ownership transfer, contrasting with the current T+1 settlement standard in U.S. markets. The system is being designed to support multiple blockchain networks and handle both traditional securities converted into tokens and natively issued digital securities.

NYSE President Lynn Martin confirmed the exchange's participation in a July tokenization pilot conducted by the Depository Trust Company (DTC). Additionally, NYSE has entered into a memorandum of understanding with Securitize, which will serve as the platform's first digital transfer agent. While technical development and industry testing are underway, the official launch remains subject to regulatory approvals.