NYSE develops tokenized securities platform to support 24/7 trading

The New York Stock Exchange (NYSE) is undertaking a pivotal modernization effort with the development of a dedicated platform for tokenized securities. This strategic initiative is designed to shatter the limitations of traditional market operating hours by facilitating continuous, 24/7 trading and near-instantaneous settlement. Leveraging Distributed Ledger Technology (DLT), the platform will enable the creation and trading of digital representations of traditional assets, ranging from corporate stocks and bonds to real estate investment trusts (REITs).

The primary motivation behind this move is enhanced efficiency and liquidity. By eliminating the conventional T+2 or T+1 settlement cycles inherent in current infrastructure, the NYSE aims to drastically reduce counterparty risk and free up institutional capital. Furthermore, the 24/7 nature of the platform positions the NYSE to better compete with fully digital and global exchanges, catering to international investors and the growing demand for ‘always-on’ markets.

While the implementation faces substantial regulatory navigation—requiring careful integration with existing securities laws—this development marks a crucial convergence between traditional financial institutions (TradFi) and blockchain innovation. Analysts suggest that the successful deployment of this tokenization platform could serve as a model for global exchanges, establishing a new, highly transparent, and accessible infrastructure standard for the future of securities trading.

Source: NYSE develops tokenized securities platform to support 24/7 trading