NYSE Developing 24/7 Tokenized Trading Platform for U.S. Stocks and ETFs

The New York Stock Exchange is building a blockchain-based platform that could enable round-the-clock trading and onchain settlement of tokenized U.S. equities and exchange-traded funds, pending regulatory approval.

According to company statements and reporting from Bloomberg, the platform will combine the NYSE’s existing Pillar matching engine with blockchain infrastructure to allow real-time trading, funding, and settlement of digital securities. The system is designed to support features such as 24/7 market access, fractional share purchases, dollar-denominated orders, and immediate settlement using tokenized capital, including stablecoin-based funding.

“This reflects an evolution of NYSE’s trading capabilities which went from trading floor, to electronic order-book, to blockchain,” said Michael Blaugrund, vice president of strategic initiatives at Intercontinental Exchange (ICE), the NYSE’s parent company. “It allows for new types of investor accessibility and will create new opportunities for retail to participate in the stablecoin-funded markets that have attracted their attention.”

If approved by regulators, the platform would power a new NYSE venue dedicated to digital securities. It would support both tokenized versions of traditionally issued shares and assets natively issued as digital securities. Tokenized shareholders would retain the same dividend and governance rights as traditional investors, with access provided through qualified broker-dealers.

Real-Time Settlement and Stablecoin Funding

Unlike today’s equity markets, which typically operate on delayed settlement cycles, the new system aims to support real-time funding and settlement. Blaugrund said ICE is in discussions with the U.S. Securities and Exchange Commission to seek approval for the model.

“We think it aligns with the retail investor’s emerging desire to be able to trade something at 5:04 p.m. on a Saturday and then use that money to buy something else at 5:05 p.m. on a Saturday,” he said. “This would facilitate that trade in a way that traditional equity infrastructure cannot.”

The platform is designed to support multiple blockchains for settlement and custody, allowing flexibility in how tokenized securities are issued and transferred. ICE is also working with major banks, including BNY and Citi, to enable tokenized deposits across its clearinghouses. This would allow clearing members to manage funds outside traditional banking hours and meet margin requirements across different time zones.

Part of a Broader Push Toward Always-On Markets

The tokenized securities initiative is part of ICE’s broader strategy to modernize market infrastructure for continuous, global trading. In addition to the new digital venue, NYSE plans to operate its fully electronic Arca exchange for 22 hours per weekday. Nasdaq is pursuing regulatory approval for 23-hour trading with a short maintenance window.

Interest in extended trading hours has been building across U.S. markets. In April 2024, NYSE surveyed market participants about the potential for round-the-clock trading, reflecting demand for market structures that resemble the always-on nature of cryptocurrency markets.

“For more than two centuries, the NYSE has transformed the way markets operate,” said Lynn Martin, president of NYSE Group. “We are leading the industry toward fully onchain solutions, grounded in the unmatched protections and high regulatory standards that position us to marry trust with state-of-the-art technology.”

Tokenization Momentum Across Finance

Tokenized securities are digital representations of traditional assets such as stocks, ETFs, real estate, and commodities. Advocates say they can enable faster settlement, greater accessibility, and improved liquidity. As of last fall, roughly $24 billion in real-world assets were tokenized on blockchains, with some analysts projecting the market could reach tens of trillions of dollars over the next decade.

Several major financial firms have already entered the space. BlackRock, WisdomTree, and Franklin Templeton have launched tokenized money market and mutual fund products, while platforms such as Robinhood and Kraken have tokenized U.S. equities and ETFs for international investors.

The London Stock Exchange Group recently introduced its own Digital Settlement House service, enabling programmatic and near-instant settlement across on- and off-chain payment networks.

Banks are also exploring tokenized deposits, which represent existing balances on distributed ledger systems to improve settlement speed, transparency, and operational efficiency. Industry observers say this shift reflects growing pressure on legacy systems built around batch processing and end-of-day settlement cycles.

Open Questions Around Liquidity and Risk

Despite the potential benefits, questions remain about how 24/7 tokenized trading would function in practice. FINRA has warned that extended trading hours could lead to lower liquidity and higher volatility outside normal sessions. The World Economic Forum has raised questions about how daily volume, opening prices, and closing prices would be defined in continuous markets.

Lucas Wennersten, founder of 49th Parallel Wealth Management, said tokenized assets could expand product access and reduce costs but may also introduce new risks.

“Tokenized assets could prove harder to regulate, increasing fraud, money laundering, terrorism financing, and other illicit activities,” Wennersten said. He added that unlimited trading hours could weaken safeguards such as circuit breakers designed to manage market stress.

For now, ICE’s tokenized trading platform remains subject to regulatory approval. If cleared, it could mark a significant step toward integrating blockchain-based infrastructure into the core of U.S. equity markets, bringing Wall Street closer to the always-on model that has defined crypto trading for more than a decade.

Lorenzo’s Perspective: Tokenization Is Becoming Core Market Infrastructure

The NYSE’s move toward 24/7 tokenized trading reflects a broader shift in how financial markets are being built. What began with crypto-native experimentation is now being adopted by traditional exchanges, banks, and clearinghouses seeking faster settlement, global accessibility, and programmable financial products.

Finance is increasingly converging around three structural pillars:

• On-chain issuance of assets such as tokenized equities, stablecoins, and digital fund shares
• Off-chain execution through regulated intermediaries and institutional-grade trading systems
• On-chain settlement that delivers real-time, transparent, and composable financial infrastructure

This same architecture underpins Lorenzo Protocol’s approach to financial service tokenization. As traditional markets move toward blockchain-native rails, demand will grow for infrastructure that can structure, deploy, and manage tokenized financial products at scale.