NYSE selects Avalanche to handle clearing and settlement for tokenized stocks
The New York Stock Exchange (NYSE) has officially selected the Avalanche blockchain as the core clearing and settlement technology for its next-generation tokenized securities trading platform. The goal is to create a U.S. stock market that operates 24 hours a day, 7 days a week, allowing investors to trade stocks and settle transactions instantly through blockchain.
According to an official announcement published on November 9 by Ava Labs, the developer of Avalanche, Avalanche will provide the core ledger technology for an alternative trading system (ATS) being developed by the NYSE. It will support the system’s clearing organization in recording trades, managing assets, and completing on-chain settlements.
Image source: X/@avax. Ava Labs stated that Avalanche will provide the core ledger technology for an alternative trading system (ATS) being developed by the New York Stock Exchange (NYSE).
The partnership marks an important step in the tokenization of stocks by NYSE parent company Intercontinental Exchange (ICE). ICE announced plans in January this year to build a digital securities trading platform, aiming to integrate traditional stock trading systems with blockchain settlement technology.
However, the new platform still requires the relevant regulatory approvals. It has not officially launched, and its development does not mean that the NYSE’s existing stock market will immediately move to around-the-clock trading.
Using a dedicated Avalanche blockchain to support multi-chain stock issuance
The key to this partnership is that the NYSE will use Avalanche technology to build a dedicated blockchain, rather than processing all transactions directly on the Avalanche public network.
Ava Labs Chief Business Officer John Nahas told (CoinDesk) that the two parties had conducted more than a year of technical testing and commercial evaluation before ultimately deciding to use the Avalanche architecture to build a dedicated clearing and settlement network that meets financial regulatory requirements.
Avalanche enables enterprises to build blockchains with independent rules, allowing operators to control network participants, transaction validation methods, and operating costs while remaining connected to other blockchain systems.
NYSE Head of Digital Issuance Dennis Lee said the new platform will support stocks issued on different blockchains, but the core ledger responsible for recording and settling transactions must offer high-speed processing, reliability, predictable costs, and participant access controls. He said Avalanche meets these requirements and has a technical community capable of supporting future development.
This means that tokenized stocks could be issued on different blockchains in the future, with trades then settled through the NYSE’s dedicated Avalanche network—without requiring all securities to be issued on the same chain.
Integrating existing matching systems and stablecoins, with a goal of enabling real-time settlement
According to plans previously announced by ICE, the new platform will combine the NYSE’s existing Pillar trading engine with blockchain-based clearing, settlement, and custody systems. Investors may eventually be able to pay for trades using stablecoins and place orders in U.S. dollar amounts, reducing the reliance of traditional stock trading on fixed trading hours and settlement cycles.
Avalanche will support atomic settlement, enabling securities and payments to be transferred in the same transaction process and reducing the risks arising from differences in settlement timing between counterparties.
Ava Labs founder and CEO Emin Gün Sirer said the dedicated infrastructure will provide predictable performance and costs, and allow the trading platform to control the system according to regulatory and operational requirements while connecting to a broader network of assets and liquidity.
According to a report by (The Wall Street Journal), the NYSE is currently targeting the fourth quarter of 2026 to launch the new platform, though the actual launch date will depend on regulatory reviews and system readiness.
Wall Street accelerates stock tokenization; $AVAX rises after announcement
In addition to selecting its clearing and settlement technology, the NYSE has also been actively building a framework for issuing tokenized securities and managing shareholder records. On November 2, the NYSE announced an expansion of its transfer agent partner network, adding Broadridge Financial Solutions, Computershare, Equiniti, and Superstate to its existing partners, Securitize and tZERO.
These institutions will help publicly listed companies manage the issuance of tokenized stocks, holder records, and shareholder rights, enabling the new platform to integrate with existing securities market systems.
Meanwhile, NYSE competitor Nasdaq is also advancing its stock tokenization plans, including working with the parent company of crypto exchange Kraken to explore the cross-border issuance and circulation of blockchain-based securities. Avalanche’s native token, $AVAX, rose following the announcement of its selection.
However, the NYSE’s adoption of Avalanche technology does not mean that all stock trades will directly use $AVAX to pay fees. The official mechanism for using tokens on the dedicated network has not yet been announced, and actual demand will depend on future technical design.
As the NYSE brings blockchain into its clearing and settlement infrastructure, stock tokenization is gradually expanding beyond individual financial products to the trading market itself. The key challenges ahead will be regulatory approval, cross-chain asset integration, and whether around-the-clock trading can maintain the security and investor protections required of traditional securities markets.
The article “NYSE selects Avalanche! Building a tokenized U.S. stock clearing and settlement system with a goal of around-the-clock trading” was first published by “Crypto City”.