The New York Stock Exchangea subsidiary of Intercontinental Exchange, Inc. (NYSE:ICE)said Monday it is developing a platform for trading and on-chain settlement of tokenized securities.
A game changer?
The exchange said in a press release that it would seek regulatory approval for the new digital platform. This platform aims to power tokenized trading experiences by offering 24/7 operations of US-listed stocks and exchange-traded funds, instant settlement, fractional share trading, and stablecoin-based financing.
The proposed platform will support “multiple chains” for settlement and custody. Tokenized shareholders will have the ability to participate in traditional shareholder dividends and governance rights.
“We are leading the industry towards fully on-chain solutions, based on the unparalleled protection and high regulatory standards that allow us to combine trust with cutting-edge technology,” said Lynn MartinChairman, NYSE Group.
‘Access to the best companies for global citizens’
Galaxy Digital Inc. (NASDAQ: GLXY) CEO Mike Novogratz said stock tokenization is a “great tool” to promote American brands and excellence to the rest of the world.
“Access to the best companies for the world’s citizens. That’s why tokenized assets are important,” Novogratz added, highlighting how countries from the Global South could own shares Apple Inc. (NASDAQ:AAPL) And Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG).
Binance (CRYPTO: BNB) co-founder Changpeng Zhao called the move “bullish” for the sector.
Regulatory hurdles ahead?
The NYSE’s move to trade in tokenized securities follows a similar proposal from Nasdaq Inc. (NASDAQ:NDAQ) last year to allow member firms and investors to tokenize stock securities and ETFs traded on the exchange. Nasdaq has filed a filing with the SEC about this.
However, the sector faces regulatory challenges. Last week, Coinbase Global Inc. (NASDAQ: MINT) has withdrawn its support for the Senate Banking Committee’s crypto market structure bill due to a clause banning on-chain versions of stocks and other real-world assets.
Currently, tokenized shares are not available for trading in the US, but companies are experimenting with the concept.
Coinbase called the concept a “huge priority” for the company Robinhood Markets Inc. (NASDAQ:HOOD) launched tokenized shares for its European customers last year.
Price promotion: ICE shares closed 0.40% higher at $173.98 on Friday, according to data from Benzinga Pro. Over the past year, the stock has risen 14.67%.
LLY maintains stronger price performance over the short, medium and long term, with an average Momentum ranking, according to Benzinga’s Edge Stock Rankings.
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