The New York Stock Exchange is evaluating Avalanche as a potential blockchain platform for its forthcoming tokenized securities trading engine, according to Michael Blaugrund, Vice President of Strategic Initiatives at Intercontinental Exchange, NYSE's parent company.
During a presentation at the Avalanche Summit New York, Blaugrund stated that NYSE was considering Avalanche to host the trading and on-chain settlement platform under development. While he did not confirm Avalanche as the final choice, he noted that the blockchain "checks a lot of those boxes" for the exchange's requirements as it evaluates alternatives for enabling 24/7 trading of tokenized securities.
"As we move towards the prospective launch of our regulated ATS, we are looking very carefully at whether Avalanche could be that solution," Blaugrund said, adding that NYSE's technology and engineering teams were collaborating closely on the evaluation.
Compliance Integration
A key advantage of Avalanche for NYSE would be the ability to create a custom Layer 1 chain where the exchange could embed its own operating rules, including Know Your Customer procedures and other compliance requirements. This approach would streamline some of the regulatory logistics associated with on-chain securities trading.
Regulatory Context
NYSE's tokenized trading initiative follows the U.S. Securities and Exchange Commission's approval of its Innovation Exception, which permits tokenized stocks to trade on decentralized finance exchanges, subject to operational rules and reporting requirements for Tokenized Securities Venues.
NYSE manages over 2.5 billion shares and processes over 500 billion messages, making the potential expansion to 24/7 tokenized trading a significant development in the exchange's broader digital strategy.
