NYSE Picks Avalanche to Settle 24/7 Tokenized Stock Trades

Avalanche gets the NYSE settlement role

When NYSE announced plans for the tokenized securities venue in January, it described an order-matching system tied to a blockchain but left the ledger provider open. Monday’s selection identifies which technology the clearing firm will use after a buyer and seller agree on a trade.

NYSE’s existing Pillar engine would match buy and sell orders. The clearing ledger would then record the transaction and support the delivery of the security and payment together, a process known as atomic settlement. Most conventional U.S. stock trades settle the next business day.

The distinction leaves room for a share token to be issued on one blockchain while trades in that security settle through the Avalanche-based ledger. NYSE executives described a private ledger with controlled participation earlier this year and said the venue would need to connect with outside wallet providers and transfer agents. Monday’s release did not identify the ledger’s operators or detail how transfers between networks would work.

Nasdaq took a different route in a rule change the U.S. Securities and Exchange Commission approved in March. Under that design, eligible tokenized securities and their conventional counterparts share an order book, with post-trade processing through the Depository Trust Company. NYSE’s affiliate is building a separate venue designed for round-the-clock trading and blockchain settlement.

The new venue is also distinct from NYSE Arca’s tokenization rule, which allows eligible participants to trade tokenized securities on that exchange during a DTC pilot. Monday’s announcement concerns the infrastructure for the separately planned market.

NYSE plans broker access and stablecoin funding

NYSE parent Intercontinental Exchange said in its January announcement that it plans to distribute access through qualified broker-dealers. Its design calls for stablecoin funding, orders entered in dollar amounts and fractional trades in U.S. stocks and exchange-traded funds.

ICE said it intends to support both tokenized shares that can be exchanged for conventional shares and securities issued directly in digital form. It said tokenized shareholders would participate in dividends and corporate governance. In March, NYSE named Securitize as its first digital transfer agent eligible to issue tokens on the planned venue, subject to applicable requirements. Transfer agents maintain ownership records and help administer corporate actions.

The broker model shapes how retail investors could reach the market. Formation Securities’ planned Solana venue described direct trading from wallets that pass venue and issuer checks. NYSE executives have said they expect brokers to serve as intermediaries for retail customers, with those firms deciding what their customers see when they place an order.

Round-the-clock trading would also require the venue to handle company announcements when other U.S. markets are closed. In the ICE interview, executives said they intended to honor trading halts tied to material news and apply controls on sharp price moves. The November announcement gave no details on how those protections would operate outside regular hours.

NYSE launch still depends on regulatory approval

The Wall Street Journal reported that the venue was targeting a fourth-quarter launch, pending approval. Ava Labs gave no opening date or initial list of stocks and ETFs on Monday. Its announcement also did not name the stablecoins customers could use.

For AVAX holders, the announcement establishes a role for Avalanche technology. The companies have yet to say what currency the clearing ledger would use for transaction fees. Avalanche’s network documentation says dedicated chains can set their own fee currencies, so any AVAX demand tied to the venue would depend on how it is configured and used.

The broader crypto market remained cautious on Monday. Alternative.me’s Fear & Greed Index stood at 29 out of 100, in the Fear range, up from 28 on Sunday.

The next milestones are regulatory clearance and a launch notice specifying which brokers and securities will be available on the first day. Those details will determine how much of the planned 24/7 market investors can use at opening.