Skip to main content
Uruguay Can

News from across crypto

NYSE picks Avalanche for tokenized stock settlement

NYSE will use Avalanche ledger technology for its planned tokenized-securities venue, which targets 24/7 trading and settlement for stocks but still needs regulatory approval.

Uruguay Can Editorial

NYSE picks Avalanche for tokenized stock settlement

The NYSE’s proposed tokenized-stock venue had no announced settlement ledger until Monday, when it named Avalanche as the provider of core ledger technology for the clearing firm behind the platform. Avalanche’s announcement says the ledger will record and settle trades; the venue’s planned round-the-clock trading and settlement still depend on regulatory approval, according to CoinDesk’s report.

Will trades settle on Avalanche’s public network?

No. Ava Labs chief business officer John Nahas told CoinDesk the NYSE will operate its own custom blockchain built with Avalanche technology, tailored to the platform’s regulatory needs. The distinction matters: Avalanche provides the ledger technology, while the exchange’s planned chain is intended to handle the venue’s settlement activity.

How would a tokenized stock trade move through the venue?

The platform is designed to connect trading with blockchain-based clearing and settlement. In practice, the process described by CoinDesk has three parts:

  1. The NYSE’s Pillar trading engine matches orders.
  2. Tokenized stocks issued on different blockchain networks can be supported by the venue.
  3. The NYSE’s custom Avalanche chain records and settles the trades.

That means you would not need a stock to originate on Avalanche for its trade to settle through the platform. The venue is planned to combine a conventional exchange matching system with blockchain-based back-end functions.

What has to happen before the platform opens?

Regulatory approval is still pending, and the announcement does not give a launch date. The selection adds Avalanche to the infrastructure behind the NYSE-affiliated plan, but it does not mean the venue is already trading tokenized shares. Until approval and launch, the settlement design remains a plan.

Sources