New York Stock Exchange Taps Avalanche To Settle Tokenized Stocks

(MENAFN- Yolo Wire) The New York Stock Exchange's (NYSE) has chosen Avalanche (CRYPTO: $AVAX) to settle tokenized stocks that trade on its platform.

Going forward, Avalanche's network will be used as the core ledger for clearing and settling trades of tokenized stocks, giving the blockchain a leading role in moving equities onchain.

Avalanche will support trading and settlement of digital versions of stocks around the clock, pending regulatory approval from the U.S. Securities and Exchange Commission (SEC).

Tokenized stocks are digital versions of equities recorded on a blockchain that represent or mirror the value of shares in a publicly traded company.

Advocates say tokenized stocks will facilitate around the clock trading and lead to faster settlement times at platforms such as the New York Stock Exchange.

"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," said the exchange in a statement.

The NYSE added that Avalanche's blockchain has been chosen because it can process transactions fast, keep costs predictable, and control who can participate.

AVAX, the crypto native token of the Avalanche network, jumped 8% higher on news that the company has been chosen to partner with the NYSE on its tokenized stock push.

Wall Street is building out blockchain-based infrastructure as it embraces around the clock stock trading that it says investors want.

The technology-heavy Nasdaq exchange is also developing tokenized stock infrastructure and has partnered with crypto exchange Kraken to distribute tokenized shares.

The New York Stock Exchange is owned by Intercontinental Exchange (NYSE: $ICE), a publicly traded holding company. ICE stock has gained 15% over the past year to trade at $172.27 U.S.

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