NYSE Advances Tokenized Securities Plans With Blockchain Settlement Infrastructure
The New York Stock Exchange (NYSE) is continuing to develop its plans for tokenized securities through the use of on-chain settlement infrastructure. This was announced by Lynn Martin, president of NYSE, who stated that the exchange is building settlement infrastructure using blockchain technology.
NYSE has been testing tokenization alongside other financial and digital asset institutions as part of a production pilot conducted by the Depository Trust Company (DTCC). The pilot involved the use of tokenized securities in various processes, including equity delivery, Treasury trade, repo trading, securities lending, collateral posting, and margining.
Participating firms included major financial institutions such as BlackRock, Goldman Sachs, JPMorgan, Nasdaq, Circle, Ondo Finance, Citadel Securities, and Vanguard. The pilot used DTCC's private Besu network and the public Canton network.
The NYSE has proposed a venue for tokenized securities, which would utilize its Pillar matching engine in combination with blockchain technology post-trade infrastructure. This would enable trading 24/7, instant settlement, fractional shares, orders in dollars, and payments in stablecoins, pending regulatory clearance.