NYSE has chosen all settlement to take place on Avalanche alone, while the stocks themselves can still be listed on a range of blockchains.
Avalanche (AVAX) will settle trades on a planned 24/7 tokenized securities platform from the New York Stock Exchange (NYSE), the latter said on Monday.
NYSE will use no other chain for that job, The Wall Street Journal reported, and its existing technology will match buy and sell orders, with Avalanche settling each trade instantly.
Ava Labs, the company behind the blockchain network, said Avalanche will serve as the core ledger for the platform’s clearing firm.
Fourth Quarter Launch
The platform is targeting a fourth-quarter launch, pending regulatory approval. Dennis Lee, Head of Digital Issuance at NYSE, said the exchange is picking the right technology for each job.
“The upcoming digital trading platform will support equities listed on a range of blockchains, though the ledger that records and settles trades needs to be fast and reliable, let us control who can take part, keep costs predictable, and have a large community of developers behind it. Avalanche meets all those needs,” Lee said.
Emin Gün Sirer, Chief Executive Officer and Founder at Ava Labs, said the platform will run on dedicated infrastructure with predictable performance and costs. He said that setup gives the platform the control it needs to meet its regulatory and operational requirements.
Six Transfer Agents Signed On
NYSE’s January plan described a design that could support multiple chains for settlement and custody. The announcement promised round-the-clock trading, instant settlement, orders sized in dollar amounts, and stablecoin-based funding.
Tokenized shares on the venue will be fungible with traditionally issued stock, and holders will get the same dividends and governance rights as other shareholders.
NYSE named Securitize its first digital transfer agent for the venue in March, and tZERO also signed on. Moreover, NYSE added four more transfer agents earlier this month: Broadridge Financial Solutions, Computershare, Equiniti and Superstate.
NYSE parent Intercontinental Exchange (ICE) is also working with BNY and Citi on tokenized deposits for its clearinghouses. Those deposits would let clearing members move money outside traditional banking hours.
The Depository Trust & Clearing Corporation (DTCC) took its own tokenization service live on October 28. Morgan Stanley tokenized US stocks and Treasuries through DTCC’s new service days later, as CryptoPotato reported.
AVAX traded at $8.87 on Monday, up 8.2% in a day, according to CoinGecko data.
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