TheBlock
Ava Labs President Charley Cooper said the New York Stock Exchange has spent the past year testing Avalanche technology and working with the blockchain company on how it could fit into the exchange's systems. NYSE also pressed Ava Labs on the economics of the project and whether it understood the exchange's wider business needs. The companies have developed what Cooper called a close working relationship, but NYSE has not selected Avalanche.
Why it matters
The testing places Avalanche inside a major institutional effort to bring tokenized securities to regulated markets. NYSE announced in January that it was developing a platform for trading and onchain settlement of tokenized U.S. equities and exchange-traded funds, subject to regulatory approval.
The proposed system would combine NYSE's Pillar matching engine with blockchain-based post-trade infrastructure and support multiple blockchains for settlement and custody. ICE Head of Strategic Initiatives Michael Blaugrund said ICE is very engaged with Avalanche and that the network checks many of the firm's requirements as it evaluates blockchain platforms.
Market impact
NYSE's plans could give blockchain infrastructure a direct role in the trading and settlement of traditional securities, but the exchange operator has not named a blockchain for the platform. ICE has also agreed to work with tZERO on infrastructure for tokenized securities markets, naming it as a design partner for the planned NYSE-affiliated platform.
The regulatory path remains central. The source said the SEC released an innovation exemption allowing certain onchain trading of tokenized stocks. Cooper expects some venues to begin offering 24-hour weekday trading within a year, although he questioned whether the largest exchanges, including NYSE, LSE and CME, will be the first to do so. The immediate signal is that institutional venues are testing blockchain systems and business models before committing to a final architecture.
Frequently asked questions
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What did NYSE test with Avalanche?
NYSE tested Avalanche technology and worked with Ava Labs on how it could fit into the exchange's systems. The exchange also examined the project's economics and business requirements.
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Has NYSE chosen Avalanche for its tokenization platform?
No. Ava Labs said NYSE has not publicly selected a blockchain for the platform, even though the two sides have developed a close working relationship.
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What securities does NYSE plan to tokenize?
NYSE announced plans for trading and onchain settlement of tokenized U.S. equities and exchange-traded funds, subject to regulatory approval.
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How would NYSE's proposed system use blockchain?
The proposed system would combine NYSE's Pillar matching engine with blockchain-based post-trade infrastructure and support multiple blockchains for settlement and custody.
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Which other company is working on NYSE tokenization infrastructure?
ICE agreed to work with tZERO on infrastructure for tokenized securities markets and named tZERO a design partner for the planned NYSE-affiliated platform.
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