In another step toward the mainstreaming of all things crypto, the NYSE announced that it plans to launch a 24/7 trading platform for tokenized securities.  Here’s an excerpt from the NYSE’s parent company’s press release with some details about the platform:

NYSE’s new digital platform will enable tokenized trading experiences, including 24/7 operations, instant settlement, orders sized in dollar amounts, and stablecoin-based funding. Its design combines the NYSE’s cutting-edge Pillar matching engine with blockchain-based post-trade systems, including the capability to support multiple chains for settlement and custody.

Subject to regulatory approvals, the platform will power a new NYSE venue that supports trading of tokenized shares fungible with traditionally issued securities as well as tokens natively issued as digital securities. Tokenized shareholders will participate in traditional shareholder dividends and governance rights. The venue is designed to align with established principles for market structure, with distribution via non-discriminatory access to all qualified broker-dealers.

A WSJ article about the initiative notes that some crypto firms have launched tokens that track popular stocks and trade 24/7 on exchanges outside the US. However, those platforms have been plagued by price deviations between the tokens and the underlying stocks. The WSJ says that if the platform receives regulatory approval, it could be used by blue-chip companies to issue tokenized versions of their stock that would be accessible to U.S. investors.

– John Jenkins