Intercontinental Exchange announced Monday that it has developed a platform for on-chain trading and settlement of tokenized securities, in a move to tap into global demand for U.S. stocks.
The NYSE’s new digital platform, for which it will seek regulatory approvals, will allow 24/7 trading, instant settlement, orders in dollar amounts and stablecoin-based financing, the exchange said.
Investor appetite for continuous trading in U.S. stocks has increased in recent years, prompting regulators to introduce new rules and approve proposals by major exchanges to allow trading outside normal market hours.
Intercontinental Exchange’s move also underscores how traditional market operators are testing blockchain-based infrastructure to reduce historical frictions in equity markets.
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“Tokenization is not a fad. It is a technology that solves problems. And there is a long list of possibilities that it opens up,” said Campbell Harvey, a finance professor at Duke University.
“Tokenized stocks are probably the low-hanging fruit,” he added.
Nasdaq, home to some of the world’s biggest technology companies, is seeking approval for shares to trade 23 hours a day, five days a week, Reuters reported in December last year.
Large brokerages such as Robinhood and Charles Schwab, as well as exchange operator Cboe Global, have also expanded stock trading hours in recent years.
The exchange is working with banks such as BNY and Citigroup to support tokenized deposits.
With information from Reuters.
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