NYSE affiliate selects Avalanche for tokenized stock settlement
The NYSE affiliate will use Avalanche ledger technology to clear and settle tokenized securities on a planned 24/7 trading venue, pending regulatory approval.
The Blocktape Editors 2 min read 7d9af6
A New York Stock Exchange affiliate plans to use Avalanche ledger technology to clear and settle tokenized securities on a venue designed for 24/7 trading, Ava Labs announced on Nov. 9. The platform’s launch depends on regulatory approval, according to Ava Labs’ announcement.
The arrangement puts Avalanche’s technology in the clearing and settlement layer of the planned venue. The NYSE affiliate is developing a digital platform for trading and on-chain settlement; the exchange previously said its design includes round-the-clock operations and instant settlement.
What role will Avalanche play in the venue?
Avalanche will provide the core ledger technology to the platform’s clearing firm, Ava Labs said. NYSE’s Dennis Lee, head of digital issuance, said the ledger needs to support fast, reliable settlement, controlled participation and predictable costs.
The planned venue will support equities listed on multiple blockchains, according to Ava Labs. CoinDesk reported that the NYSE plans to use a custom blockchain built with Avalanche technology for recording and settling trades, rather than settling on Avalanche’s public network, citing an interview with Ava Labs chief business officer John Nahas.
When could the 24/7 market open?
The platform is designed for 24/7 trading, clearing and settlement for subscribers, but Ava Labs said those operations are subject to regulatory approvals. The announcement gave no launch date.
The plan builds on the NYSE’s previously announced tokenized securities platform, which is designed to combine its Pillar matching engine with blockchain-based post-trade systems. Intercontinental Exchange, the NYSE’s parent, said the platform is intended to support dollar-sized orders, stablecoin funding and tokenized shares fungible with traditionally issued securities, subject to regulatory approval.
The next step is regulatory approval for the NYSE-affiliated platform. Until then, the 24/7 trading and settlement model remains a plan, not a live market.
Source material
- Ava Labs’ announcement — prnewswire.com