Avalanche (AVAX) surged 12.7% after the New York Stock Exchange (NYSE) announced it would use the blockchain to settle trades for its upcoming tokenized stocks platform. The news came on the heels of Avalanche's strongest quarter yet, marking a significant turnaround for the altcoin.
Under the new arrangement, Avalanche will serve as the core ledger for the clearing firm behind the NYSE-affiliated trading platform. Every trade will be cleared and settled on Avalanche, though the stocks themselves can be issued on other blockchains. NYSE's Pillar engine will handle trading, with plans for 24/7 trading, instant settlement, and stablecoin funding, pending regulatory approval.
Dennis Lee, head of digital issuance at NYSE, highlighted Avalanche's fast settlement times, predictable costs, and control over participant access as key reasons for the choice. The timing is notable, as the announcement follows Avalanche's best Q3 performance, with Pharaoh’s DEX volume doubling to $5.33 billion and on-chain credit rising 34% to $37.4 million.
AVAX's price jumped from $8.10 to $8.93 before settling near $8.83, a 12.7% increase from its daily low. Technical indicators showed strong momentum, with the RSI spiking past 90 before falling to 62.5 and the ADX at 56.7, suggesting a robust upward trend.