NYSE picks Avalanche to settle trades on its 24/7 token platform
Why it matters
If you run custody or post-trade, one of the world's biggest exchanges will use a blockchain to record who owns what on its new platform. Expect clients to ask whether you can hold and move these digital shares.
Post to XThe short version
On 9 November, Ava Labs said the New York Stock Exchange has picked its Avalanche blockchain, a shared digital record, to track who owns what on a planned NYSE-linked platform for digital versions of shares. The platform is built to trade and settle around the clock, every day, but still needs approval from regulators.
Here's what happened. Ava Labs, the company behind the Avalanche blockchain, said on Monday that its technology will sit at the core of clearing and settlement for an upcoming NYSE-linked platform for tokenised shares. Clearing and settlement is the back-office step where cash and shares actually change hands.
The platform is designed to run 24/7, with trading, clearing and settlement around the clock, according to Ava Labs. It still needs regulatory approval, and the release gives no launch date.
Why Avalanche? NYSE's head of digital issuance, Dennis Lee, said the venue will support shares on several blockchains, and that the settlement ledger needs speed, reliability, predictable costs and control over who can take part, The Block reported. The choice follows about a year of testing, according to The Block.
Put it in context. A week earlier, NYSE added Broadridge, Computershare, Equiniti and Superstate as partners for the firms that keep share registers, alongside Securitize and tZERO. NYSE said those partners together serve close to 5,000 listed companies, including nearly 99% of the S&P 500.
Where this comes from
- Avalanche to Serve as Core Ledger Technology for Clearing and Settlement of NYSE-affiliated Upcoming Tokenized Securities Platform · Ava Labs via PR Newswire
- The NYSE Group's network of transfer agent partners is expanding · NYSE
- NYSE to settle tokenized stocks on Avalanche in planned 24/7 market · The Block
Written with AI from the sources above and checked against them before publishing. Here's how we work. This is news, not financial advice. Spotted a mistake? Tell us.