The New York Stock Exchange (NYSE) is seeking regulatory approval for a tokenised securities platform and a new trading venue as parent company Intercontinental Exchange (ICE) pushes digital strategies.
Both tokenised versions of traditionally issued securities and digitally native securities will be supported by the platform. The service will use NYSE’s Pillar matching engine and blockchain-based post-trade systems.
ICE is also enhancing its clearing services for 24/7 trading and tokenised collateral. The group is working with a number of banks, including BNY and Citi, to support tokenised deposits across its clearing houses.
READ MORE: BNY bolsters digital cash offering
In a Morgan Stanley research report, Michael Cyprys and Kade O’Reilly suggested that tokenisation could help increase trading velocity and volumes over time.
“Tokenised collateral could allow for instant, seamless collateral migration across ICE’s 6 clearinghouses. Clients would likely need to hold less collateral at each clearinghouse and without that buffer, we would expect a lift in trading velocity.”
“While regulatory approval is required, we see a supportive regulatory backdrop and administration,” they stated.
Last year, Treasury Secretary Scott Bessent affirmed the US Administration’s support for digital assets.
“Digital asset companies deserve regulatory clarity — and that’s exactly what we are working toward,” he stated on X in May.
However, liquidity issues that may arise if tokenised and traditional equities trade separately are a concern for the industry. Similarly, the degree to which tokenised equities would be required to align with reporting and transparency requirements is unclear.
In September 2025, Nasdaq also announced a tokenisation initiative. Morgan Stanley drew attention to the different approaches the two exchange groups are taking.
READ MORE: Nasdaq eyes tokenised equities amid regulatory concerns
“As we understand it, Nasdaq would integrate tokenised equities into its existing order book and trading platform and then settle the trade in a token, if directed by the customer, whereas ICE is proposing a separate venue to trade tokens and a separate settlement layer using the Ethereum blockchain in their data center to handle settlement,” the authors explained.
Initial interest in tokenised trading from retail broker-dealers is expected to draw in institutional investors in the future, sources have told Global Trading.
Yet best execution requirements for retail broker-dealers could subdue early retail participants, Morgan Stanley’s report warns, due to initially limited token liquidity. Relief on these obligations provided by regulators could ease this issue, the authors suggested.
“We view tokenisation and 24/7 trading as working hand-in-hand, as tokenisation and stablecoins/tokenised deposits can heavily aid collateral movement outside of traditional banking hours. Extended trading hours will provide investors with greater market access to hedge, manage and take risk, and lower barriers to entry for international investors,” they added.
Several industry players are working on 24/5 and 24/7 trading capabilities. The FIX Trading Community is one such entity, recently announcing a working group on the topic.
READ MORE: FIX explores 24/5 trading as overnight volume predictions soar
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