Towards "7*24 hours" trading! New York Stock Exchange applies for approval of "all-weather blockchain trading platform"

# Source: Wall Street Insights

By Long Yue

The New York Stock Exchange (NYSE) announced that it is developing a blockchain-based tokenized securities trading platform and plans to seek regulatory approval. The platform aims to enable **24/7 round-the-clock trading** and instant settlement of stocks, addressing the capital occupation and risk issues associated with the traditional T+1 settlement system.

On Monday, January 19 (local time), the 233-year-old NYSE declared that it is building a blockchain-powered "tokenized securities" trading platform, designed to offer 24/7 trading of equities.

The NYSE stated that it will apply for regulatory approval to allow companies to issue securities in the form of digital tokens. Unlike the exchange’s current traditional model, which only operates on business days and closes overnight, the new platform will provide round-the-clock 24/7 trading services. In addition, the platform will support instant settlement and permit investors to fund their trades using US dollar-pegged stablecoins.

This move signals that the 24/7 trading and instant settlement features, long hallmarks of the cryptocurrency market, are expected to be introduced into the regulated mainstream stock market. However, the NYSE has not yet provided a specific launch timeline for the platform, and its ultimate implementation remains subject to regulatory approval.

## Goodbye to T+1: Instant Settlement and 24/7 Liquidity

For investors, the most notable potential change brought by the platform lies in the innovation of trading mechanisms. The NYSE explicitly noted that the new platform is intended to deliver 24/7 trading services. This will completely transform the current traditional US stock market model, which only operates on business days and closes at night, resolving the time barrier faced by cross-border investors.

Beyond trading hours, settlement speed is the core highlight of this reform.

The traditional financial industry follows the T+1 settlement system, under which investors’ cash and stocks are not actually delivered until the next business day after a trade is executed. This delay forces brokers to hold additional capital as a buffer to guard against counterparty default risks.

The NYSE pointed out that the new platform will leverage blockchain technology to achieve instant settlement. This will not only free up occupied capital but also significantly reduce systemic risks. Looking back at the January 2021 GameStop "retail investors vs. Wall Street" saga, brokerages such as Robinhood were forced to suspend trading due to a surge in capital requirements during the settlement cycle. The instant settlement feature of blockchain could theoretically prevent such market disruptions caused by liquidity crises.

Furthermore, the NYSE said that users of the new platform will be able to use stablecoins—a type of cryptocurrency pegged to the US dollar—for transaction fund flows, further bridging the payment channel between traditional fiat currencies and digital assets.

## The Wall Street "Tokenization" Race: From Nasdaq to Major Banks

The NYSE’s move is not an isolated incident, but rather a microcosm of Wall Street giants accelerating the deployment of blockchain infrastructure. Against the backdrop of the Trump administration’s shift toward crypto-friendly policies, traditional financial institutions (TradFi) are actively embracing the technological advantages of decentralized finance (DeFi).

As the NYSE’s main competitor, Nasdaq filed an application with the US Securities and Exchange Commission (SEC) as early as September last year, seeking permission to allow investors to trade tokenized versions of stocks. In the broader asset management space, JPMorgan Chase, Goldman Sachs, BNY Mellon, and State Street have all launched tokenized money market fund programs, enabling clients to hold digital tokens representing fund shares.

Regarding the development of the new platform, Michael Blaugrund, Vice President of Strategic Initiatives at Intercontinental Exchange (ICE), clarified: "The new NYSE platform announced on Monday is developed in-house." He emphasized that although ICE previously invested $2 billion in crypto prediction platform Polymarket and plans to collaborate in the future, the NYSE’s tokenization platform does not involve Polymarket in this instance.

According to *Barron’s* report, to support this ecosystem, ICE is partnering with banks including BNY Mellon and Citigroup to back the tokenized deposit business of its clearinghouse.

Traditional banking sectors are also following suit. JPMorgan Chase’s asset management arm launched its first tokenized money market fund in December last year. Goldman Sachs, BNY Mellon, and others have also announced similar projects, aiming to let clients hold digital tokens that represent money market fund shares.

## The Dual Game of Efficiency and Regulation

Despite the promising technological prospects, the market needs to maintain cautious optimism regarding compliance.

Crypto industry advocates have long argued that blockchain technology can simplify corporate financing processes and make market operations more transparent and efficient. However, regulators and some lawmakers have remained vigilant about potential fraud risks. In addition, several crypto firms outside the US have already launched tokens tracking popular stocks such as Nvidia or Tesla, but these products have been widely criticized for often deviating (de-pegging) from the prices of the underlying stocks.

If the NYSE’s platform gains approval, its greatest significance will be providing a regulated and compliant channel for blue-chip companies to issue tokenized securities. This not only meets the demand of a new generation of investors for round-the-clock market access but also attempts to resolve the pricing deviations and security issues associated with offshore tokenized stocks within a regulated framework.

Currently, the NYSE has been in contact with SEC staff regarding the plan, but the specific approval outcome will be the key factor determining the project’s success or failure.

## Risk Warning and Disclaimer

The market is risky, and investment requires caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situations, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are in line with their specific circumstances. Investment decisions made based on this article shall be at the user's own risk.