NYSE Eyes Avalanche for Tokenized Trading Platform
The New York Stock Exchange (NYSE) is evaluating the use of Avalanche as the blockchain for its upcoming digital tokenized securities trading platform. According to Michael Blaugrund, Vice President of Strategic Initiatives at ICE, NYSE's parent company, they are considering Avalanche due to its custom L1 chains, which would allow them to embed Know Your Customer (KYC) rules directly.
This move follows the SEC's Innovation Exception, which legally enables tokenized stocks to trade on decentralized finance exchanges. NYSE is looking to enable 24/7 trading of tokenized securities using decentralized technology, and Avalanche 'checks a lot of those boxes' for them.
Avalanche would allow NYSE to spin off its own L1 chain, enabling it to define its own operating rules and ease some compliance logistics linked to on-chain securities trading. The platform is part of a broader digital strategy by ICE to operate on-chain market infrastructure for trading, settlement, custody, and capital formation in the new era of global finance.