- NYSE is developing an ATS for 24/7 trading of tokenized U.S. stocks and ETFs.
- Avalanche remains a potential NYSE infrastructure partner, with no final decision.
- NYSEs planned platform targets instant settlement but requires regulatory approvals.
The New York Stock Exchange is developing an alternative trading system (ATS) for 24/7 onchain trading, with Avalanche emerging as a potential infrastructure partner.
The proposed venue would allow investors to trade tokenized U.S. stocks and exchange-traded funds beyond traditional market hours, while using blockchain infrastructure to settle transactions.
Avalanche Enters NYSEs Infrastructure Evaluation
Michael Blaugrund, ICEs vice president of strategic initiatives, discussed the evaluation during Avalanche Summit NY. He said Avalanche meets several platform requirements and that both teams remain closely engaged.
“Avalanche checks a lot of those boxes for us, so were very engaged with the team,” Blaugrund said. However, the discussions do not establish Avalanche as the selected provider. The ATS remains under development, and neither side has announced a final decision on adoption.
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How the ATS Would Change Trading and Settlement
NYSE plans to combine its Pillar matching engine with blockchain settlement infrastructure. The design includes stablecoin funding and immediate settlement, connecting trade execution with the transfer of securities and payment.
That approach could shorten settlement from the current U.S. T+1 cycle. Shared blockchain records could also strengthen transaction traceability, although transparency would depend on the platforms design and access permissions.
For investors across time zones, continuous trading would extend opportunities to respond to news outside U.S. market hours. However, longer access would not guarantee consistent liquidity or narrow spreads overnight and on weekends.
The ATS structure provides a separate venue under an existing regulatory framework. It allows NYSE to develop blockchain trading without immediately changing its main exchange model, while keeping the proposed platform subject to securities-market requirements.
Regulatory Conditions Shape the Institutional Shift
The platform still requires regulatory approvals and arrangements covering custody, investor identification, and market integrity. Tokenization would not remove those obligations. Meanwhile, the SECs five-year Innovation Exemption creates a conditional pathway for tokenized stock trading. Its requirements include preserving shareholder rights and allowing issuers to object to tokenized representations of their securities.
NYSEs project accompanies tokenization efforts by BlackRock, Franklin Templeton and JPMorgan, spanning funds and institutional settlement. Together, these initiatives extend blockchain development across several parts of traditional finance.