Moving towards "7*24-hour" trading! NYSE files for approval of an "around-the-clock blockchain trading platform"

On January 19 (Monday) local time, the New York Stock Exchange, with a history of 233 years, announced that it is developing a "tokenized securities" trading platform based on blockchain technology, aiming to enable stocks to be traded 24/7 around the clock.

The NYSE stated that it will seek approval from regulators to allow companies to issue securities in the form of digital tokens. Unlike the traditional model where NYSE is only open on weekdays and closed at night, the new platform will offer 24/7 trading services. In addition, the platform will support instant settlement and allow investors to use dollar-pegged stablecoins to fund transactions.

This move means that features like "around-the-clock trading" and "instant settlement," which have long characterized the crypto market, may now be introduced into the regulated mainstream stock market. However, the NYSE has not provided a specific launch timetable for the platform, and its final rollout still depends on a regulatory "green light."

Farewell to "T+1": Instant Settlement and 24/7 Liquidity

For investors, the most notable potential change on this platform is the innovation in trading mechanisms. The NYSE explicitly stated that the new platform aims to provide 24/7 trading services. This will completely change the current model of the U.S. stock market, which only opens on weekdays and closes at night, solving the time barrier faced by cross-time-zone investors.

In addition to trading hours, settlement speed is a core highlight of this reform.

Traditionally, the financial industry uses a "T+1" settlement rule, meaning that investors' cash and stocks are only actually delivered on the next business day after a trade is made. This delay forces brokers to hold extra capital as a buffer to guard against the risk of counterparty default.

The NYSE indicated that the new platform will use blockchain technology to achieve instant settlement. This can not only release locked-up funds but also significantly reduce systemic risk. Looking back at the "GameStop event" in January 2021, when retail investors battled Wall Street, brokers like Robinhood were forced to suspend trading due to surging capital requirements during the settlement cycle. The instant settlement feature of blockchain could theoretically prevent such market disruptions caused by liquidity crises.

Additionally, the NYSE stated that users of the new platform will be able to use stablecoins (a cryptocurrency pegged to the U.S. dollar) for transaction funding, further connecting traditional fiat currency with digital asset payment channels.

Wall Street’s Race for Tokenization: From Nasdaq to Major Banks

The NYSE’s move is not an isolated event, but part of the accelerated deployment of blockchain infrastructure by Wall Street giants. Against the backdrop of the Trump administration turning to more crypto-friendly policies, traditional financial institutions (TradFi) are actively incorporating the technological advantages of DeFi (decentralized finance).

As the NYSE’s main competitor, Nasdaq had already applied to the U.S. Securities and Exchange Commission (SEC) last September, seeking to allow investors to trade tokenized versions of stocks. In broader asset management, JPMorgan, Goldman Sachs, BNY Mellon, and State Street Bank have all launched tokenized money market fund projects, enabling clients to hold digital tokens representing fund shares.

Regarding the development of the new platform, ICE’s VP of strategic planning, Michael Blaugrund, clarified: "The new NYSE platform announced Monday is internally developed." He emphasized that although ICE previously invested $2 billion in the crypto prediction platform Polymarket and plans future cooperation, the NYSE’s tokenization platform does not involve Polymarket.

According to Barron's, in order to support this ecosystem, ICE is cooperating with banks including BNY Mellon and Citibank to support tokenized deposit business in its clearing house.

The traditional banking industry is also catching up. JPMorgan's asset management division launched its first tokenized money market fund last December. Goldman Sachs, BNY Mellon, and others have announced similar projects, aiming to let clients hold digital tokens representing shares of money market funds.

Efficiency and Regulation: A Tug of War

Despite the technical prospects, the market still needs to maintain cautious optimism regarding compliance issues.

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 members of Congress remain alert to potential fraud risks. In addition, some offshore crypto companies have already launched tokens tracking popular stocks like Nvidia or Tesla, but these products are often criticized for frequently deviating from underlying share prices ("de-pegging").

If the NYSE’s platform gains approval, its greatest significance lies in providing blue-chip companies with a regulated, compliant channel for tokenized issuance. This not only addresses new-generation investors’ need for around-the-clock market access but also seeks to resolve prior pricing deviations and security concerns for offshore tokenized stocks, all within a regulatory framework.

Currently, the NYSE is in communication with SEC staff about the plan, but the specific outcome of regulatory review will be the key determinant of the project’s success.

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