A detailed explanation of the NYSE's tokenized securities platform: Why conduct 7x24 hours trading

Writing: Cookie

On January 19, according to official sources, ICE Group’s New York Stock Exchange announced today that it is developing a platform for tokenized securities trading and on-chain settlement, and will seek regulatory approval for this.

The NYSE’s new digital platform will support tokenized trading experiences, including 24/7 operation, real-time settlement, order placement in USD amounts, and fund transfers based on stablecoins. Its design integrates the NYSE Pillar matching engine with a blockchain-based post-trade system, capable of supporting multi-chain settlement and custody.

ICE Group President Lynn Martin stated plainly: “We are leading the industry toward a fully on-chain solution while maintaining the NYSE’s unmatched protections and high regulatory standards.” In other words, they aim to improve efficiency with blockchain while continuing to earn Wall Street’s trust.

Currently, the plan is still in early development, not yet built or fully tested. NYSE has said it will seek approval from regulators such as the U.S. Securities and Exchange Commission (SEC), and the platform is expected to launch later in 2026.

Crypto players’ first reaction might be, “It’s over, the mainstream players are entering on a large scale again.” The narrative of trading US stocks on-chain will be completely taken away, so what do we have left? Actually, the on-chain transformation of traditional securities is not a trend that emerged only after last year’s significant progress in crypto compliance; it has existed for a long time. When we look more closely at the past and present of traditional securities on-chain in the U.S. and globally, we find that this is an unstoppable and continuously advancing trend. Anxiety is reasonable, but confidence is more appropriate.

In the U.S., the NYSE is actually racing against Nasdaq

Compared to NYSE’s just-announced on-chain plans, Nasdaq had already submitted a formal proposal to the SEC last year.

On September 8, 2025, Nasdaq submitted proposal SR-NASDAQ-2025-072 to the SEC, aiming to amend rules to allow trading of tokenized securities on Nasdaq and to integrate blockchain technology for settlement and clearing. The proposal emphasizes that blockchain can bring faster settlement, improved audit trails, and smoother order-to-settlement processes.

If approved, this feature is expected to be available by the end of Q3 2026. The proposal has entered SEC review, and a revised version (Amendment No. 1) was submitted on December 29, 2025.

Compared to that, it seems the NYSE has fallen behind Nasdaq, but in fact, the NYSE’s new plan is not a hasty counterattack on Nasdaq; it is a continuation of ICE’s long-term blockchain strategy.

As early as 2015, ICE began exploring blockchain technology, and in 2018 launched the Bakkt platform (focused on crypto futures and custody). In 2021, the platform went public on the NYSE through a SPAC merger with VPC Impact Acquisition Holdings.

Last August, ICE partnered with Chainlink to provide on-chain FX and precious metals rate data via Chainlink. In October, ICE announced a strategic investment of up to $2 billion in Polymarket. There were also reports at the end of last year that ICE was in talks to invest in MoonPay.

More notably, the securities on-chain reform plans adopted by NYSE and Nasdaq are different.

Nasdaq’s plan adopts a “hybrid model,” where traders can choose between traditional or tokenized settlement when entering orders. All trades are executed in the same order book, using the same CUSIP identifiers, execution rules, and priorities. Clearing and settlement are handled by DTC, and tokenization is only an optional “digital representation,” not changing the existing structure (such as T+1 settlement cycle).

In other words, Nasdaq is not creating a new, independent on-chain securities trading platform but integrating tokenized securities into the existing system, emphasizing compatibility with current infrastructure, minimizing disruption, and avoiding new risks. Although there were reports at the end of last year that Nasdaq was seeking approval to allow market trading five days a week, 23 hours a day, it remains a gradual and moderate reform.

The NYSE’s plan is evidently more aggressive, aiming to build a completely new, independent on-chain securities trading platform. ICE is collaborating with banks like BNY Mellon and Citigroup to support tokenized deposits in its clearinghouses, helping clearing members transfer and manage funds outside traditional banking hours, fulfill margin obligations, and accommodate different jurisdictions and time zones.

This breaks free from the limitation of traditional banking clearing windows only open on weekdays. For NYSE, T+0, 24/7 trading, fractional shares, and stablecoin support are all essential. Compared to Nasdaq, this represents a deeper transformation.

Globally, exploration of securities tokenization and asset tokenization has long begun and is thriving. Examples include Switzerland’s SIX Digital Exchange (SDX), Germany’s Deutsche Börse D7 platform, the UK’s Archax, and Singapore’s DBS Digital Exchange. However, such an aggressive reform plan as NYSE’s is still unprecedented.

The race between NYSE and Nasdaq is not just about earning more fees but about actively responding to the new landscape of global competition in traditional securities markets. Like Nasdaq, NYSE’s securities trading platform NYSE Arca has also submitted a proposal to extend trading hours, awaiting approval in 2024.

London Stock Exchange (LSE) and Asian exchanges (such as Tokyo or Hong Kong) are also exploring extending trading hours.

For traditional securities exchanges, extending trading hours is not just about opening a few more hours. It involves many technical changes, such as adjusting closing prices, dividends, and rights issues, and facing potential network stability challenges. Brokerage firms also need to upgrade to follow these changes.

Historically, extending trading hours has always been a trend driven by technological progress. For example, in the U.S., from the 1920s to 1940s, daily trading hours were about 5 hours; from 1950s to 1970s, about 6 hours; in the 1980s-1990s, about 6.5 hours; and into the 21st century, approximately 16 hours.

According to Deloitte’s data, by June 2023, foreign investors held $26.86 trillion in U.S. securities. One reason for extending trading hours is to better accommodate and attract foreign investors.

Kevin Tyrrell, an executive at NYSE, told CNBC: “Whether in the U.S. or globally, retail and institutional investors’ interest in U.S. stocks continues to grow. Our plan to extend trading to 22 hours/5 days (five days a week, 22 hours per day) is based on multiple discussions with market participants, as well as our own data and analysis. Given current investor demand and the availability of existing market infrastructure, we believe this 22 hours/5 days extension is the right approach.”

For international companies seeking to list, they want to access the most liquid stock market in the world—U.S. stocks. If NYSE or Nasdaq supports 24/7 trading, they will likely prefer the one that supports around-the-clock trading, which is more time-friendly.

Although exchanges are aware of the risks of 24/7 trading and the costs of upgrades, the endless, years-running crypto markets’ attraction to global users has become their best “teacher.” Whether extending trading hours or improving trading and settlement efficiency, embracing global investors is a must. Traditional securities are not static; they are constantly evolving.

Impact on traditional markets

Supporting fractional shares again significantly lowers the entry barrier for retail investors. Compared to traditional stock markets, a major advantage of cryptocurrencies is that even if Bitcoin rises to $1 million per coin, retail investors can buy just $10 worth. But if NYSE’s vision is ultimately realized, everyone could buy $10 worth of giants like Nvidia, Tesla, or Apple.

24/7 trading and T+0 settlement will greatly accelerate the pace of traditional stock markets. On the positive side, settlement risks and cross-time-zone frictions will be greatly reduced, and the flexibility of investment and price discovery efficiency will be significantly improved.

Risks also exist. More intense volatility and increased emotional trading, a nonstop market could lead to liquidity dispersion and more price manipulation. Especially during the market’s closing periods, on-chain trading could become a “paradise” for “bad actors” and insider trading.

Due to changes in trading and settlement mechanisms, traditional institutions and market makers may also enter a phase of rapid upgrades, similar to NYSE and Nasdaq. Facing more advanced 24/7 information monitoring and automated trading strategies, for retail investors, these advances could mean more opportunities or more brutal competition—it’s hard to say.

Potential benefits for certain crypto projects

Although NYSE’s announcement mentions “support for multi-chain settlement and custody,” no further details have been disclosed about whether this includes public chains like Ethereum or Solana. If so, it would be a major boon for public chain tokens.

When on-chain stablecoins can directly enter U.S. stocks through NYSE’s channels, the likelihood of a resurgence of altcoins in the crypto space will temporarily decrease. The reason is that the demand for on-chain stablecoins to access U.S. stocks has never been fully satisfied; once the channel opens, a significant siphoning effect will occur in the short term.

However, over the years, the crypto community has cultivated a group of investors with distinctive traits, and the overall investment environment in crypto is quite different from the stock market. Whether to pursue stability or dreams of 100x or 1000x returns, investors’ choices will still allow for long-term observation.

For crypto projects like AAVE, Compound, which offer stablecoin lending, NYSE’s plan is like “a divine narrative.” For projects like Ondo, which previously aimed to bring U.S. stocks onto the chain, they will face a painful transition.

For the crypto industry, an unprecedented challenge from traditional securities markets is imminent. For the blockchain industry, this is a “further conquest” of traditional finance markets and another milestone in the industry’s overall progress.

Does this mean the future of crypto markets is becoming increasingly bleak? I believe not. I believe that with the overall industry progress, the unstoppable trend of “tokenizing everything” will continue, and securities are just one of many assets. The crypto market will still be a place where miracles happen—believe in the future.