NYSE Pushes into Tokenized Equities, Signals Market Structure Shift
The New York Stock Exchange (NYSE) is pushing into tokenized equities, proposing an alternative trading system that would allow for 24-hour trading and near-instant settlement. According to Reid Noch, vice president of electronic trading at TD Securities, this move signals a significant market structure shift.
Noch describes the NYSE's plan as a '2.0' market shift rather than a minor product addition. The proposed platform would use blockchain-based settlement infrastructure while working within existing U.S. market rules, including custody and settlement anchored to the Depository Trust and Clearing Corporation.
TD Securities sees potential impact on trading hours, collateral management, settlement cycles, and overall market liquidity, affecting how large financial institutions operate. Tokenized equities have gained traction, with Kraken's xStocks platform reporting over $25 billion in cumulative trading volume since its launch last year.