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NYSE Advances Onchain Settlement for Tokenized Securities

Industry pilots plus a Securitize memorandum test whether blockchain and stablecoins can be integrated into regulated U.S. equity plumbing pending regulatory approval.

Overview

  • NYSE said on Monday that it is developing onchain settlement infrastructure as part of a broader effort to yield a digital trading venue that links its Pillar matching engine to blockchain post-trade rails.
  • The exchange took part in a July DTC production pilot that converted securities into tokenized representations and used those tokens in live transactions with more than 30 firms.
  • DTCC plans to launch a wider Tokenization Service in October after the July tests, but the pilot’s tokenized trades still settled on the existing T+1 timetable.
  • NYSE signed a memorandum with Securitize to name the firm as the first digital transfer agent for the planned platform and to handle token issuance and transfer-agency functions.
  • Key operational and regulatory questions remain unresolved, including instant onchain delivery-versus-payment, capital-treatment of tokenized positions, multi-chain custody arrangements, and formal approvals for a 24/7 instant-settlement venue.