NYSE working on a new platform for trading digital tokens around the clock

The New York Stock Exchange is developing a pioneering digital platform that will allow investors to trade tokenized assets around the clock, marking a significant shift in how financial markets operate in the digital age.

The platform, announced Monday by NYSE owner Intercontinental Exchange (ICE), will function independently from the traditional exchange, which currently operates only during weekday business hours. This new venture promises to deliver several innovations, including instant settlement of transactions, the ability to place orders in dollar amounts rather than shares, and funding through stablecoins.

Unlike the conventional trading system, the digital platform leverages blockchain technology – the same technology that underpins cryptocurrencies – to create digital tokens that represent various assets. These tokens can stand in for stocks, bonds, real estate, or even fractional ownership of artwork, enabling them to be traded like cryptocurrencies by virtually anyone, anywhere, at any time.

“This represents a natural evolution of our markets,” said an ICE spokesperson. “We’re responding to growing institutional and investor interest in tokenized securities while maintaining the regulatory standards and protections that the NYSE is known for.”

The development comes amid growing interest in tokenization across the financial industry. Stablecoins, typically pegged to maintain a value of $1, have played a crucial role in fueling interest in tokenizing traditional financial assets. These digital currencies provide a bridge between conventional finance and blockchain-based assets, offering the stability of fiat currency with the technological advantages of cryptocurrencies.

Before launching, the platform will need to navigate significant regulatory scrutiny. If approved, it would power a new NYSE venue specifically designed to support trading of tokenized versions of company shares. This would represent one of the most significant moves by a major traditional exchange into the digital asset space.

The initiative is part of ICE’s broader strategy to expand its transaction clearing capabilities. By building infrastructure for 24/7 trading of tokenized securities, ICE is positioning itself at the forefront of what many analysts see as the future of financial markets. The company is also exploring the potential integration of tokenized collateral, which could revolutionize how assets are used to secure financial obligations.

To support this ambitious project, ICE has announced collaborations with major financial institutions including Citigroup and Bank of New York Mellon. These partnerships aim to facilitate tokenized deposits across ICE’s six clearinghouses globally, creating a comprehensive ecosystem for digital asset trading.

Market analysts view the NYSE’s move as potentially transformative for capital markets. The ability to trade assets continuously without the limitations of exchange operating hours could significantly increase market liquidity and accessibility.

“This is a watershed moment for traditional financial infrastructure,” said a market expert familiar with the project. “We’re seeing the convergence of traditional finance with blockchain technology in a way that could fundamentally alter how markets function.”

The tokenization trend has been gaining momentum across the financial sector, with several major banks and financial institutions exploring or implementing their own tokenization projects. Global consulting firm McKinsey estimates that by 2030, up to $4 trillion in financial assets could exist as tokens on blockchain networks.

For retail and institutional investors, the platform could offer unprecedented flexibility, allowing them to trade outside traditional market hours and potentially access fractional ownership of high-value assets that might otherwise be out of reach.

As traditional exchanges like NYSE move into the digital asset space, the line between conventional finance and blockchain-based alternatives continues to blur, potentially heralding a new era in how financial markets operate and how investors interact with them.