On January 19, according to official sources, the New York Stock Exchange, a subsidiary of ICE Group, announced that it is developing a platform for trading tokenized securities and on-chain settlement, and will seek regulatory approval for it.
The NYSE's new digital platform will support a tokenized trading experience, including 24/7 operation, instant settlement, USD-denominated orders, and stablecoin-based fund transfers. Its design integrates the NYSE Pillar matching engine with a blockchain-based post-trade system, enabling multi-chain settlement and custody capabilities.
Lynn Martin, president of ICE Group, put it bluntly: "We are leading the industry toward fully on-chain solutions while maintaining the NYSE’s unparalleled protection and high regulatory standards." In other words, they want to use blockchain to improve efficiency while continuing to win the trust of Wall Street.
Currently, the plan is still in the early stages of development and has not yet been built or fully tested. The NYSE stated that it will seek approval from regulatory agencies such as the U.S. Securities and Exchange Commission (SEC), and the platform is expected to launch later in 2026.
The first reaction from crypto enthusiasts might be, "We're doomed! The big players are about to flood the market again. The narrative of trading US stocks on the blockchain is about to be completely wiped out. What are we left?" Actually, the on-chaining of traditional securities markets isn't a trend that only emerged after the significant push for cryptocurrency compliance last year; it's been going on for a while. When we understand the past and present of on-chaining traditional securities markets in the US and globally, we'll find that it's an unstoppable and continuously advancing trend. Anxiety is reasonable, but we should have confidence.
In the United States, the NYSE is actually racing against Nasdaq.
In contrast to the NYSE, which has only just begun to announce its on-chain plan, Nasdaq had already submitted a formal proposal to the SEC last year.
On September 8, 2025, Nasdaq submitted proposal SR-NASDAQ-2025-072 to the SEC, aiming to amend the rules to allow the trading of tokenized securities on the Nasdaq market and integrate blockchain technology for settlement and clearing. The proposal emphasizes that blockchain can bring faster settlement, improved audit trails, and a smoother order-to-settlement process.
If approved, the feature is expected to be available by the end of the third quarter of 2026. The proposal is currently under SEC review, and an amended version (Amendment No. 1) was submitted on December 29, 2025.
In comparison, the NYSE may seem to have fallen behind Nasdaq, but in fact, the NYSE's new plan is not a hasty counterattack against Nasdaq, but a continuation of the long-term blockchain strategy of the NYSE's parent company, ICE.
As early as 2015, ICE began exploring blockchain technology and launched the Bakkt platform (focused on crypto futures and custody) in 2018. In 2021, the platform went public on the NYSE through a SPAC merger with VPC Impact Acquisition Holdings.
Last August, ICE partnered with Chainlink to provide on-chain foreign exchange and precious metal exchange rate data. In October, ICE announced a strategic investment of $2 billion in Polymarket. Late last year, there were also reports that ICE was in talks to invest in MoonPay.
More notably, the NYSE and Nasdaq have different approaches to on-chain securities reform.
Nasdaq's approach employs a "hybrid model," where traders can choose between traditional or tokenized settlement (using blockchain) when placing orders. All trades are executed within the same order book, using the same CUSIP identifier, execution rules, and priorities. Clearing and settlement are handled through DTC, with tokenization serving only as an optional "digital representation" and not altering the existing structure (such as the T+1 settlement cycle).
In other words, Nasdaq is not creating a completely new, independent on-chain securities trading platform, but rather integrating tokenized securities into the existing system, emphasizing compatibility with the existing system, minimizing disruption to the current infrastructure, and avoiding creating new risks. Although there were reports late last year that Nasdaq was seeking approval to allow the market to trade 5 days a week, 23 hours a day, it remains a gradual and moderate reform.
The NYSE's proposal is clearly more radical; they aim to create a completely new, independent on-chain securities trading platform. ICE is partnering with banks such as BNY Mellon and Citigroup to support tokenized deposits within their clearinghouses, helping clearing members transfer and manage funds outside of traditional banking hours, fulfill margin obligations, and adapt to the funding needs of different jurisdictions and time zones.
This breaks free from the traditional bank clearing window restrictions that only open on weekdays. For the NYSE, T+0 settlement, 24/7 trading, fractional share trading, and support for stablecoin funds are all required, representing a far more profound transformation than Nasdaq.
Globally, the exploration of security tokenization and even asset tokenization has been underway for some time and is flourishing. Examples include Switzerland's SIX Digital Exchange (SDX), Germany's Deutsche Börse's D7 platform, the UK's Archax, and Singapore's DBS Bank's Digital Exchange. However, the NYSE's radical reform plan is still unprecedented.
The race between the NYSE and Nasdaq is not merely about "earning more commissions," but rather a proactive move in the new landscape of global competition in traditional securities trading markets. Like Nasdaq, the NYSE's trading platform, NYSE Arca, has also submitted a proposal to extend trading hours and is awaiting formal approval, which is expected in 2024.
The London Stock Exchange (LSE) and Asian exchanges (such as those in Tokyo or Hong Kong) are also exploring the possibility of extending trading hours.
For traditional stock exchanges, extending trading hours is not as simple as it seems on the surface: "opening for a few more hours." Exchanges face numerous technical changes, such as closing prices, ex-rights and ex-dividend adjustments, and the challenge of potential network stability. Securities brokers also need to upgrade to keep pace with these changes.
Historically, extending trading hours has been a continuous trend accompanying technological advancements. In the United States, for example, daily trading hours in the stock market were only about 5 hours in the 1920s–1940s, rising to about 6 hours in the 1950s–1970s, and to about 6.5 hours in the 1980s–1990s, until reaching approximately 16 hours in the 21st century.
According to Deloitte's report, foreign investors held $26.86 trillion in U.S. securities in June 2023. One reason for extending trading hours is certainly to better accommodate and attract foreign investors.
In an interview with CNBC, NYSE executive Kevin Tyrrell stated, "Both retail and institutional investors continue to show growing interest in U.S. stocks, both in the U.S. and globally. Our 22-hour/5-day (5 days a week, 22 hours a day) extended trading program is based on numerous communications with market participants and our own data and analysis. Given the current level of investor demand and the availability of existing market infrastructure, we believe the 22-hour/5-day extended trading program is the right approach."
For international companies looking to go public, listing on the US stock market, which has the highest liquidity in the world, is preferred. Given that either the NYSE or Nasdaq supports 24/7 trading, they are more likely to choose the one that does, as it is more convenient in terms of timing.
While stock exchanges are aware of the risks and upgrade costs associated with 24/7 trading, the enduring appeal of the long-established cryptocurrency market to a global user base serves as their best "teacher." Extending trading hours and improving trading and settlement efficiency are essential steps to attracting a global investor base. Traditional securities haven't remained "traditional" either; they are constantly evolving.
Impact on traditional markets
Support for fractional share trading undoubtedly lowers the entry barrier for retail investors significantly once again. One of the major advantages of cryptocurrencies compared to the traditional stock market is that even if Bitcoin rises to $1 million per coin, retail investors can still buy it for just $10. But if the NYSE's vision is ultimately realized, everyone will also be able to buy $10 worth of Nvidia, Tesla, or Apple, or other US stock giants.
24/7 trading and T+0 settlement will significantly accelerate the market pace of the traditional stock market. On the positive side, settlement risks and cross-time zone frictions will be greatly reduced, and investment flexibility and price discovery efficiency will be greatly improved.
Risks also exist. More volatile trading and more emotional trading, the potential for liquidity dispersion due to a constantly active market, and increased price manipulation. Especially during the closing periods of traditional securities trading markets, on-chain transactions could become a breeding ground for malicious manipulation and insider trading.
Due to changes in trading and settlement mechanisms, traditional institutions and market makers may also enter a phase of rapid upgrading, similar to the NYSE and Nasdaq. Faced with increasingly sophisticated 24/7 information monitoring and automated trading strategies, it's difficult to say whether this progress will translate into more opportunities or even fiercer competition for retail investors.
Which cryptocurrency projects have potential benefits?
Although the NYSE's announcement mentioned "support for multi-chain settlement and custody," no further details have been provided regarding whether this refers to public chains like Ethereum and Solana. If so, it would undoubtedly be a significant boon for public chain tokens.
When on-chain stablecoins can directly access US stock listings through the NYSE, the probability of another altcoin boom in the crypto market will decrease again in the short term. It's described as short-term because the demand for on-chain stablecoins to access US stocks has never had a chance to be met; once this opportunity is opened, it will inevitably create a significant siphon effect in the short term.
However, over the years, the crypto has also cultivated a group of investors with distinct characteristics. The overall investment environment in the crypto is actually quite different from that of the stock market. Whether investors prioritize stability or the dream of 100x or 1000x returns remains to be seen, and a longer-term perspective is advisable.
For crypto projects like AAVE and Compound that offer stablecoin lending, the NYSE's plan is nothing short of a "sudden narrative." Meanwhile, projects like Ondo, which previously aimed to bring US stocks onto the blockchain, will face the pain of transformation.
For the crypto market, this presents an unprecedented challenge from the traditional securities market. For the crypto industry, this represents another significant step forward for blockchain technology in the traditional financial market, marking another milestone for the industry as a whole.
Does this mean the future of the crypto market is increasingly bleak? I believe not. I believe that with the overall progress of the industry, the future trend of "tokenization of everything" is unstoppable, and securities are just one aspect of it. The crypto market will continue to be a place where miracles happen; I believe in the future.
