NYSE Partners with Securitize on Tokenized Trading Platform

The New York Stock Exchange, a unit of Intercontinental Exchange, announced a partnership Tuesday with digital asset firm Securitize to develop a blockchain-based platform for trading tokenized versions of stocks and exchange-traded funds. The collaboration aims to create a 24-hour, seven-day-a-week marketplace that enables instant settlement and uses stablecoins for funding, marking a significant push to integrate distributed ledger technology into traditional securities trading.

Under the memorandum of understanding, Securitize will serve as the exchange's first digital transfer agent. In this role, the firm will issue and manage shares as blockchain-based digital tokens, maintaining records of ownership, processing dividends and handling regulatory compliance. The platform, referred to as the Digital Trading Platform, will support both tokenized shares that align with existing securities and those issued natively on the blockchain. Tokenized shareholders will retain full rights, including voting privileges and dividend entitlements, distinguishing the system from many offshore synthetic products.

The initiative builds on Intercontinental Exchange's January outline for a...