NYSE selects Avalanche to clear and settle tokenised securities

• The core ledger for clearing and settlement on the NYSE-affiliated tokenised securities platform will use Avalanche technology, the blockchain announced.
• Speed, reliability, predictable operating costs and network controls were central to the choice of Avalanche, according to NYSE's Dennis Lee.
• With partnerships including OKX and Trade[XYZ], NYSE parent ICE is broadening its on-chain activities as the latest announcement emerges.

A 4% rise on Monday put Avalanche (AVAX) at odds with the wider crypto market decline. The gain followed its announcement that it would supply the core ledger technology for clearing on the New York Stock Exchange's (NYSE) forthcoming tokenised securities trading platform.

Avalanche to underpin clearing and settlement on NYSE-affiliated tokenised securities platform

The developer behind Avalanche, Ava Labs, said on Monday that the blockchain would provide the clearing infrastructure for the NYSE-affiliated digital alternative trading system (ATS). Subject to regulatory approvals, the platform is being developed to enable 24/7 trading, clearing and settlement of tokenised securities.

Different components of the exchange's digital market infrastructure will use different technologies, according to NYSE Head of Digital Issuance Dennis Lee.

Describing the exchange's approach, Lee said: "At the NYSE, we're looking at how blockchain technology can expand what we offer in equities, and we're picking the right technology for each job,"

For the ledger that records and settles trades, he stressed the need for speed, reliability, predictable operating costs and control over who can participate in the network.

Fixed trading hours and delayed settlement have shaped the infrastructure used by traditional financial markets for decades, Ava Labs founder and CEO Emin Gün Sirer also said.

"For decades, financial markets have operated on infrastructure designed around fixed trading hours and delayed settlement. There is no longer a technical reason for these constraints to exist,” Sirer said in an X post published on Monday.

In his view, the choice of Avalanche for the NYSE-affiliated platform marked an important step for the technology.

Nevertheless, equities listed across several blockchain networks are expected to be supported by NYSE's tokenised platform. Trading will therefore not be restricted to assets issued on Avalanche.

NYSE pushes ahead with tokenised securities trading plans

In January, the NYSE said it was developing a digital platform to trade tokenised securities and settle transactions on-chain; the latest development follows that announcement.

Among the changes envisaged for traditional equity markets are 24-hour trading and funding through stablecoins, both of which the proposed platform is designed to support.

Digital asset firm Securitize became the first eligible digital transfer agent for the planned platform under a partnership announced by the NYSE in March. The two firms are working on infrastructure for the issuance and management of tokenised securities.

Connecting traditional financial markets to blockchain-based trading infrastructure is a wider strategic goal of NYSE parent company Intercontinental Exchange (ICE), of which this initiative is part.

An agreement with crypto exchange OKX in March broadened ICE's digital asset partnerships. Under the partnership, plans were outlined to offer the exchange's users access to futures operated by ICE and to NYSE tokenised equities markets.

A further partnership, with Trade[XYZ], aims to bring Hyperliquid-based perpetual futures markets to the US, covering equities, commodities, foreign exchange and cryptocurrencies.

At the time of writing, AVAX stands at $8.65 following a 5.7% gain over the past 24 hours.