What is the NYSE's new tokenized securities platform?

It's a planned platform by the NYSE for trading securities represented as digital tokens on a blockchain, offering features like 24/7 trading and instant settlement.

How does the NYSE's tokenized platform differ from crypto exchanges?

While offering 24/7 trading like crypto exchanges, the NYSE's platform focuses on tokenized traditional securities and aims for instant settlement of trades.

What are stablecoins and how will they be used on the NYSE platform?

Stablecoins are cryptocurrencies pegged to the dollar. They can be used to fund trades on the NYSE's upcoming tokenized securities platform.

Home / Business and Economy / NYSE Bets Big on Blockchain With Tokenized Securities

NYSE Bets Big on Blockchain With Tokenized Securities

20 Jan

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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.

NYSE Bets Big on Blockchain With Tokenized Securities

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.