Source: Odaily Odaily
Author: Wenser
Original title: NYSE plans to launch 24/7 tokenized stock trading, leaving competitors bewildered.
The “flash crash Monday” is still ongoing, and just now, the crypto market was hit with another bombshell – according to multiple media sources, the NYSE plans to launch a tokenized securities trading and on-chain settlement platform that supports 24/7 trading. Following its massive $2 billion investment in Polymarket last year, ICE Group is once again joining the wave of cryptocurrency revolution through its securities exchange.
It is worth mentioning that as early as September last year, Nasdaq, a "competitor," had already submitted an application to the SEC for tokenized stock trading. This change by the NYSE has also been interpreted by the outside world as a move to cope with competition from other securities exchanges.
This article will briefly summarize the market opinions related to this event and explore its potential impact.
The NYSE has also jumped on the bandwagon: a more radical "on-chain tokenization solution for stocks" than Nasdaq.
Since Trump took office, the regulatory environment for cryptocurrencies in the United States has changed dramatically. As a result, crypto IPOs, stablecoins, PayFi, and DeFi have shaken off the policy shadows cast by the Biden administration and have developed rapidly. According to statistics , the trading volume of stablecoins reached $33 trillion last year, a surge of 72% year-on-year. Behind this is the huge revenue and profit earned by Tether and Circle, two stablecoin issuers, and it also represents the massive liquidity that can be channeled into the stock market.
Moreover, unlike Nasdaq's application to the SEC for tokenized stock trading last September, nearly six months later, the NYSE's actions related to "stock tokenization trading" are not just an application to regulatory authorities, but a complete "on-chain solution".
Specifically, the NYSE's "on-chain tokenization solution for stocks" includes the following three aspects:
This is a tokenized securities trading and on-chain settlement platform that plans to support 24/7 trading of US stocks and ETFs, fractional share trading, stablecoin-based fund settlement, and instant delivery, and will combine the NYSE’s existing matching engine with a blockchain settlement system.
According to the NYSE's plan, tokenized stocks will have the same dividends and governance rights as traditional securities.
NYSE's parent company, ICE, is also collaborating with banking giants such as BNY Mellon and Citibank to explore tokenized deposit and clearing infrastructure to support cross-time zone, 24/7 fund and margin management.
In comparison, if Nasdaq's application for stock tokenization is like "old wine in new bottles" in response to policy, then the NYSE's plan is like a "new retail trading platform" that integrates all aspects of "making, packaging, distributing, and recycling".
Most importantly, the NYSE's "stock tokenization" trading platform supports 24/7 trading, which was originally one of the advantages that distinguishes cryptocurrencies from securities stocks. Now, this advantage has become a joke in the face of the massive amount of assets and liquidity of funds held by the NYSE, one of the world's largest stock exchanges.
As a result, some pessimistic views exist in the crypto market: "TheRWA sector in the cryptocurrency market and the increasingly tight liquidity will face the most severe 'father' yet. Compared to the NYSE with an annual trading volume of over $100 trillion, crypto RWA projects are practically non-existent."
How crypto professionals view it: The impact is both positive and negative; the past is the past, and the present is the present.
In 1792, 24 stockbrokers signed the Buttonwood Agreement under a sycamore tree outside 68 Wall Street in New York, which gave birth to the precursor of the New York Stock Exchange. At that time, due to the limited number of investment targets and market activity, stock trading hours were relatively flexible and there were no strict continuous trading sessions. Brokers mainly traded through auctions or informal means.
On March 8, 1817, the organization officially changed its name to the New York Stock Exchange Commission by drafting its bylaws.
In May 1887, the New York Stock Exchange (NYSE) standardized stock trading hours as "Monday to Friday: 10:00 a.m. to 3:00 p.m.; Saturday: 10:00 a.m. to 12:00 p.m.
In 1952, Saturday trading was officially abolished.
In 1985, the opening time of stock trading was moved forward to 9:30 a.m. and the closing time was extended to 4:00 p.m., forming the current 9:30–16:00 trading session, which has lasted for about 41 years.
If the NYSE’s application to open 24/7 tokenized stock trading is approved, it means that this “limited-time trading model” that has lasted for decades or even centuries will soon become history. From this perspective, the crypto market has gained high recognition from the mainstream financial community.
The affirmative side's view: The train of the times is roaring in.
Simon Dixon, founder of BTC OG and BankToTheFuture, posted , "Nothing can stop this train. Tokens are IOUs for real assets held by custodians, a complement to DTCC claims. 24/7 trading without tokens. This is an upgraded version of surveillance states. You will have nothing, but you will be happy." The accompanying image shows BlackRock CEO Larry Fink and Coinbase CEO Brain Amstrong embracing.
Indian crypto KOL Open4profit wrote , "(This will) enable markets to react immediately to global news; artificial intelligence and algorithms will play a greater role in pricing and risk management; this is a major change for the stock market, so pay close attention to changes in liquidity."
Marcin, co-founder of Redstone DeFi, saw an "entrepreneurial opportunity," saying , "This is a good start and fits perfectly with what we're going to do next."
Jake O, head of Wintermute's OTC business, also praised the move, stating : "Traditional infrastructure can extend transaction times, but it cannot solve the T+1/2 friction, nor can it eliminate rent-seeking behavior that increases costs and delays. Ironically, cryptocurrencies solved this problem years ago: 24/7 trading, instant settlement, global access, and no gatekeepers or (traditional bank) 'data fees.' Convergence is inevitable: on-chain equity transactions, atomic settlement, and the boundaries between 'crypto' and 'traditional' assets will completely disappear. Welcome to the 21st century..."
Of course, some see it as an opportunity, while others see it as a threat.
Opposing view: Exchanges reap the benefits, while the younger generation suffers.
Contrary to industry insiders' belief that the NYSE's move will stimulate the development of the crypto market and promote the popularization of cryptocurrencies, some industry insiders have also seen some potential problems.
Louis T, a partner at investment firm L1D , wrote : "The entire global financial system is migrating to on-chain, but for some reason, they don't seem to be bidding on these 'bear-addictive' tokens like us." In other words, traditional financial markets are not buying into the so-called RWA assets of cryptocurrencies.
The founder of MoonRock Capital expressed concern about the living conditions of the younger generation : "This is not good news for the baby boomers; your lives are becoming more difficult." He probably meant that compared to the previous generations, who have seen a significant increase in numbers, the baby boomers face a more complex investment environment and a 24/7 "liquidity game."
BingX consultant Nebraskangooner also raised his own questions: "Why should the stock market trade 24 hours a day? Nobody wants that except the exchange. The only advantage is that without after-hours trading, stop-loss and take-profit points can really function. I wonder what impact this will have on stock price movements after earnings reports are released?" This view focuses more on the impact of information and the exchange's profits.
In summary, a gap remains between traditional finance and the crypto-native community, presenting opportunities for users and entrepreneurs.
Finally, I would like to share my personal views based on the above information:
First, based on the available information, the NYSE's application may not be approved until the end of 2026 at the earliest, and the main approval agency will still be the U.S. SEC. This is a significant time lag for crypto platforms.
Secondly, the main target audience of the NYSE's stock tokenization trading and on-chain settlement platform is likely still conventional investment institutions and compliant investors. However, for crypto natives and even global investors, what they need is not only the fulfillment of functional requirements, but also the ability to achieve "KYC-free registration trading, global asset liquidity allocation, and higher leverage with greater risk" through stock tokenization and RWA platforms. This may be the advantage of crypto RWA projects.
Ultimately, the core objective of the NYSE, Nasdaq, and other exchanges promoting stock tokenization remains trading volume and transaction fees. Just as centralized exchanges (CEXs) are constantly launching new token projects, in the short term, they may need to learn from CEXs, decentralized exchanges (DEXs), and even on-chain Perp DEXs. This is also the foundation for existing mature platforms to potentially stage a comeback. At that point, the NYSE, Nasdaq, and other US stock exchanges may not be immune to falling from their pedestal. The key lies in where the liquidity is, where the attention is, and where the user base is.
Twitter: https://twitter.com/BitpushNewsCN
BitPush Telegram Community Group: https://t.me/BitPushCommunity
Subscribe to Bitpush Telegram: https://t.me/bitpush
