The New York Stock Exchange is teaming with Securitize to build its tokenized securities trading platform. The two organizations announced in a Tuesday (March 24) news release. The companies say they will work together to create standards for digital transfer agents and tokenization agents taking part in the digital ecosystem. The focus here will be on developing ‘regulatory, operational, and technology requirements’ for institutional-grade tokenized securities infrastructure, the release said.
“The NYSE continues to lead the industry in responsible innovation,” Lynn Martin, president of the NYSE Group, said in the release. “As we explore how tokenization can enhance capital markets, it is critical that new infrastructure is developed in a way that preserves the trust, transparency, and protections investors expect,” Martin added. “Securitize brings deep experience in digital asset infrastructure and transfer agency, making them a strong partner in helping design this next generation of market structure.” The partnership was first reported by The Wall Street Journal (WSJ), which notes that several brokerages and crypto exchanges have introduced tokenized versions of popular U.S. stocks and ETFs to investors overseas.
The announcement follows a report from January that the NYSE was creating a venue for round-the-clock tokenized stock trading. “This reflects an evolution of NYSE’s trading capabilities which went from trading floor, to electronic order-book, to blockchain,” Michael Blaugrund, vice president of strategic initiatives at NYSE parent Intercontinental Exchange, said in an interview with Bloomberg News. “It allows for new types of investor accessibility, and will create new opportunities for retail to participate in the stablecoin-funded markets that have attracted their attention.” Meanwhile, Nasdaq recently got permission from U.S. regulators to allow some securities to trade in tokenized form.
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