The New York Stock Exchange has chosen Avalanche to serve as the core ledger for clearing and settling trades on its planned tokenized stock platform. The move gives $AVAX a central role in Wall Street’s push to bring equities onchain.
Avalanche gets the settlement role
Avalanche will supply ledger technology to the clearing firm behind the upcoming NYSE-affiliated alternative trading system, according to a Monday press release. The venue wants to support trading and settlement around the clock, though it still needs regulatory approval.
That does not mean every part of the market will run on Avalanche. The platform is designed to handle stocks issued on several networks, while Avalanche records and settles the trades. Dennis Lee, NYSE’s head of digital issuance, said the exchange is choosing the right technology for each job. He said the settlement ledger needs to process transactions quickly, keep costs predictable and control who can participate.
$AVAX rose 8% in the past 24 hours after the news.
Not a single-chain plan
The NYSE isn’t trying to put all of stock trading on one blockchain. Its planned platform will pair the exchange’s Pillar trading engine with blockchain-based clearing, settlement and custody. The goals include 24/7 trading, instant settlement and stablecoin-based funding.
Last week, the exchange expanded its network of transfer agents to six firms. It added Broadridge Financial Solutions, Computershare, Equiniti and Superstate to existing partners Securitize and tZERO. Equiniti is in an acquisition deal with CoinDesk parent Bullish. The details matter because tokenized stocks need more than a trading screen. They need transfer agents, custody and settlement links that can work with existing market rules.
Wall Street’s tokenization race
NYSE rival Nasdaq is also building tokenized stock infrastructure. It has a partnership with crypto exchange Kraken’s parent company to distribute blockchain-based shares globally. Meanwhile, the Depository Trust and Clearing Corporation launched a tokenization service last month using its private Besu blockchain and the Canton Network. That service focuses on custody and transfers rather than running a trading venue.
Another path is coming through the Securities and Exchange Commission’s innovation exemption. It opens a route for select blockchain-based venues to trade tokenized stocks through automated market makers, with issuers able to opt out. One such project involves crypto exchange OKX and Intercontinental Exchange, the NYSE’s parent company. That venue is separate from the NYSE-affiliated tokenized stock platform.
For now, the Avalanche deal adds another piece to the NYSE’s plans. It also shows that the race to tokenize stocks is not a single contest. Exchanges, clearing houses and crypto firms are each building different parts of the market, and regulators will decide how fast those pieces can connect.
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