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NYSE Bets Big on Blockchain With Tokenized Securities
20 Jan
Summary
- NYSE plans a new platform for tokenized securities on a blockchain.
- The platform would offer 24/7 trading and instant settlement of trades.
- Users could fund trades using stablecoins, a dollar-pegged cryptocurrency.
The New York Stock Exchange (NYSE) announced plans to develop a trading platform for tokenized securities, signaling a significant embrace of blockchain technology. Companies could issue securities represented as digital tokens, similar to how cryptocurrencies operate, pending regulatory approval.
This new initiative promises to revolutionize trading with features like 24/7 market access and instant settlement, contrasting sharply with current T+1 settlement practices. Such immediate finality could reduce the capital brokers need to hold and potentially prevent past trading disruptions.
Furthermore, the platform will support stablecoins for funding trades. Major financial institutions like JPMorgan Chase, Goldman Sachs, and Bank of New York Mellon are also exploring tokenization, indicating a broader industry trend towards integrating blockchain for traditional financial instruments.
