Blockchain Settlement at the NYSE

The New York Stock Exchange is moving forward with its plans to integrate blockchain technology into its equity trading infrastructure. The exchange has selected Avalanche as the core settlement ledger for its upcoming tokenized securities platform. This move is part of a broader effort to modernize how stocks are cleared and settled, aiming to enable trading and settlement processes that operate around the clock, pending final regulatory approval.

The choice follows over a year of technical, business, and ecosystem reviews conducted by the exchange and Ava Labs. According to John Nahas, chief business officer at Ava Labs, the NYSE will not utilize the public Avalanche blockchain. Instead, the exchange plans to operate a custom blockchain built on Avalanche technology. This setup allows the platform to set specific rules regarding access and operations to align with regulatory requirements. The technology will be deployed through Ava Cloud, a service that provides companies with the tools to launch and manage their own private networks.

The platform is designed to handle trades using the exchange's Pillar trading engine, while the Avalanche-based ledger will manage the clearing, settlement, and custody components. Dennis Lee, head of digital issuance at the NYSE, stated that the exchange required a ledger capable of processing transactions at high speeds while maintaining predictable costs. The architecture is built to support tokenized stocks issued on various blockchain networks, meaning the custom Avalanche chain will act as a central hub for recording and settling trades regardless of their origin.

Institutional Infrastructure

The move by the NYSE comes as other major financial infrastructure firms pursue their own blockchain initiatives. The Depository Trust and Clearing Corporation, which serves as the central clearinghouse for U.S. securities, launched its own tokenization service last month. That system utilizes a private Besu blockchain and the Canton Network, focusing primarily on custody and transfer services rather than acting as a trading venue. Meanwhile, Nasdaq is developing its own infrastructure, including a partnership with the parent company of the crypto exchange Kraken to distribute blockchain-based shares globally.

To support its tokenized securities platform, the NYSE has expanded its network of transfer agents. Last week, the exchange announced new agreements with Broadridge Financial Solutions, Computershare, Equiniti, and Superstate. These firms join existing partners Securitize and tZERO. These partnerships are intended to facilitate issuer-sponsored tokenized securities and provide the necessary support for the platform’s operations.

The technical development of the platform has been ongoing for more than a year. Ava Labs CEO Emin Gün Sirer noted that the custom infrastructure is intended to provide the atomic settlement capabilities required for 24/7 trading. The goal is to create a system that combines the security of traditional financial markets with the speed and efficiency of decentralized ledgers. While the platform is targeting a fourth-quarter launch, its operational status remains contingent on receiving the necessary approvals from regulators.

A Competitive Market for Tokenization

The push toward onchain equities is not limited to the NYSE. Formation Securities recently notified the U.S. Securities and Exchange Commission of its intent to launch a tokenized stock trading venue on the Solana network. Formation plans to operate under the SEC’s innovation exemption, a framework that allows for the trading of tokenized shares through automated market makers. Trading on the Formation venue is expected to begin in early 2027.

The Solana-based venue intends to list tokenized shares from companies such as Galaxy Digital, Exodus Movement, and Forward Industries. Unlike the NYSE’s platform, which is being built in cooperation with public companies, other projects have faced resistance from issuers. Under the SEC’s innovation exemption, venues must notify issuers in writing and wait 30 calendar days before trading shares tokenized by unaffiliated third parties. This window allows companies to object to the listing of their shares. As of early November, approximately 90% of the 62 companies initially selected for the OKXICE venue had objected to the proposal.

The value of tokenized stocks currently varies across different networks. According to data from RWA.xyz, Ethereum holds roughly $747 million in tokenized stock value, while BNB Chain accounts for approximately $1.7 billion. Solana currently hosts about $575 million in tokenized stock value. The emergence of these venues suggests a growing effort to demonstrate that blockchain-based trading can compete with traditional exchanges on efficiency and spread costs.

Global Standardization Efforts

Efforts to standardize tokenized securities are also taking shape internationally. The European Central Bank, the European Commission, and the European Securities and Markets Authority are currently seeking nominations for the European Tokenisation Standards Group. This industry-led body aims to draft common standards for holding and settling tokenized securities across different distributed ledger technology platforms.

The group is expected to begin its work in January 2027, with a mandate to produce an initial set of standards by early 2028. The goal is to ensure that various DLT platforms can work effectively with existing financial systems and to prevent market fragmentation. These standards are intended to support the Eurosystem’s broader initiative, known as Appia, which seeks to develop a blueprint for the future of tokenized financial markets in Europe.

Sources

1. CoinDesk, NYSE picks Avalanche to settle tokenized stocks amid Wall Street's blockchain race, https://www.coindesk.com/business/2026/11/09/nyse-picks-avalanche-to-settle-tokenized-stocks-amid-wall-street-s-blockchain-race

2. CoinDesk, Solana set for its first tokenized stock venue under SEC framework, listing Galaxy, https://www.coindesk.com/business/2026/11/06/solana-lset-for-its-first-tokenized-stock-venue-under-sec-framework-listing-galaxy

3. Cointelegraph, Formation Securities plans Solana stock trading venue under SEC exemption, https://cointelegraph.com/news/formation-securities-solana-stock-trading-venue-sec-exemption?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound

4. Cointelegraph, EU taps industry to set standards for tokenized securities, https://cointelegraph.com/news/eu-nominations-tokenization-standards-group?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound

5. The Block, NYSE to settle tokenized stocks on Avalanche in planned 24/7 market, https://www.theblock.co/news/business/2026-11-09-nyse-settle-tokenized-stocks-avalanche-planned-24-7-market-436208

Charts and the full source list: https://amk.news/article/nyse-taps-avalanche-for-tokenized-stock-settlement