The New York Stock Exchange (NYSE) is partnering with Securitize to develop its new tokenized equity trading platform.
The two companies announced that they have signed a deal to build NYSE’s planned Digital Trading Platform.
Tokenization specialist Securitize will serve as a design partner, focusing on tracking ownership and handling corporate actions on blockchain rails.
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Securitize, which is backed by large asset managers such as BlackRock (NYSE: $BLK), is expected to be among the first firms to mint tokenized versions of stocks on the NYSE platform.
The partnership comes as the New York Stock Exchange and other indices such as Nasdaq (NASDAQ: $NDAQ) move to put tokenized stocks on blockchain rails.
Tokenized versions of stocks will enable around-the-clock trading and near-instant settlements, similar to cryptocurrency markets.
Recently, NYSE-parent company Intercontinental Exchange (NYSE: $ICE) invested in crypto exchange OKX to develop tokenized stocks and derivatives products.
Rival exchange Nasdaq has obtained regulatory approval for its tokenized stock trading framework and has tapped crypto exchange Kraken to distribute stock tokens on its behalf.
Securitize is planning to go public this year via a special purpose acquisition company (SPAC).
The stock of Intercontinental Exchange, NYSE’s parent company, has declined 11% in the past 12 months to trade at $156.88 U.S. per share.
