NYSE advances securities tokenization plan, industry insiders optimistic about positive impact on the crypto industry

Source: TokocryptoBlog Original Title: NYSE Ready for Stock Tokenization, Major Bullish Signal for Crypto Original Link:

The NYSE’s Tokenization of Securities Plan

A leading exchange founder Changpeng “CZ” Zhao commented that the NYSE(NYSE)'s plan to launch a tokenized securities platform is a significant positive signal for the crypto industry and digital asset exchanges. This statement was made after the NYSE officially announced the development of a blockchain-based stock trading platform.

CZ stated on social media that the NYSE’s initiative will have a positive impact on the entire crypto ecosystem, including benefits for digital asset exchanges. The NYSE previously announced that it is building a platform for tokenized securities trading and on-chain settlement(settlement), and is awaiting regulatory approval.

Platform Features and Capabilities

According to a press release from the NYSE, the platform aims to enable 24/7 trading of stocks and exchange-traded funds(ETF) around the clock, with support for instant settlement. Stocks related to crypto(such as stocks from a compliant platform) will also be available on the platform. Additionally, stablecoin-based financing will be integrated, allowing investors to trade using stablecoins.

The NYSE also opened opportunities for multi-chain collaboration. The developed blockchain-based post-trade system claims to support multiple blockchain networks to meet settlement and custody needs. This announcement came months after the U.S. Securities and Exchange Commission(SEC) considered allowing on-chain stock trading alongside crypto assets.

Last December, the SEC was also reported to have advanced processes to allow tokenized securities trading on certain exchanges. This move by the exchange could bring 24-hour trading to crypto-related stocks(such as stocks from a compliant platform, Strategy(MSTR), and Robinhood(HOOD)).

Industry Experts’ Views

In addition to CZ, market analyst Adam Livingston also called the NYSE’s announcement a major bullish signal. He stated that as a result of traditional exchanges adopting tokenized securities, Bitcoin purchase volume could increase significantly.

From an industry perspective, Reece Merrick, an executive at a blockchain company, described the NYSE’s tokenization plan as a “major” move. He emphasized the platform’s capabilities in enabling 24/7 stock and ETF trading, fractional share trading, and instant settlement through tokenized capital.

Similar views were expressed by Alex Thorn, head of research at a digital asset company, who called the NYSE’s move an important stage in stock tokenization. In his view, the core value of tokenization lies in self-custody, blockchain-based settlement, peer-to-peer transfers, and direct access to the decentralized finance(DeFi) ecosystem.

Thorn added that the involvement of clearinghouses and exchanges with tokenized stocks represents a crucial “closed loop” for the digital finance industry. Several major digital asset exchanges, including a compliant platform, are also developing tokenized securities services.

Meanwhile, Robinhood CEO Vlad Tenev mentioned that stock tokens are currently available to Robinhood users in the EU but not yet in the US. He emphasized that the time has come for the US to play a leading role in global crypto policy.