The New York Stock Exchange has chosen Avalanche to run the ledger behind its planned tokenized stock platform, placing a public blockchain beneath the clearing and settlement layer of a traditional market. Ava Labs, the company behind Avalanche, announced the arrangement on Monday.
The NYSE tokenized stock platform is being developed by parent Intercontinental Exchange (ICE) and is designed for 24/7 trading, clearing and settlement of tokenized securities, subject to regulatory approval.
What Happened?
Ava Labs said Avalanche will serve as the “core ledger technology” for the clearing firm behind an NYSE-affiliated digital trading venue. Clearing and settlement are the steps that finalize trades and transfer ownership. By placing the blockchain there, the NYSE is using distributed ledger technology for the plumbing itself, not only to wrap a single fund or stock in a token.
Important Details
NYSE head of digital issuance Dennis Lee said the exchange is “picking the right technology for each job.” He added that although the platform will support equities listed across several blockchains, the ledger recording and settling trades must be fast, reliable and able to control who participates.
Emin Gün Sirer, Ava Labs’ CEO and founder, framed the deal as proof that blockchains can support the infrastructure markets trade on, not just the products. He cited Avalanche’s “24/7 atomic settlement” and predictable costs.
The move lands in a crowded field. The NYSE separately tapped Blockchain.com to reach crypto investors with tokenized stocks and ETFs, while ICE and crypto exchange OKX are planning a 24/7 tokenized stock venue under an SEC exemption. Morgan Stanley has also moved to tokenize securities.
The OKX venue has hit friction. Every Magnificent Seven stock, including Apple and Meta, opted out of having their shares tokenized on that venue, and 67 companies joined them. An IMF study found tokenized stocks show genuine demand yet remain volatile and illiquid.
Why Does This Matter?
If the platform receives approval, it would test whether institutional-scale markets can settle on public blockchains. The demand signals are mixed, however, and the opt-outs suggest issuers are still weighing the risks.
Source: Decrypt