The New York Stock Exchange is developing an onchain settlement platform for tokenized securities, NYSE President Lynn Martin announced on August 10. Speaking at a capital markets seminar in Seoul, Martin outlined the exchange's efforts to integrate blockchain-based settlement into its existing market infrastructure alongside broader technological initiatives.

The announcement places NYSE among a growing group of major financial institutions pursuing tokenization. BlackRock launched its BUIDL tokenized treasury fund on Ethereum in March 2024, and firms including Franklin Templeton have also issued tokenized funds on public blockchains, signaling accelerating interest in bringing traditional financial assets onto distributed ledgers.

Onchain Settlement Infrastructure in Development

Martin said NYSE is building infrastructure designed to settle tokenized securities onchain. The project will explore how blockchain technology can support the future of global financial markets by combining the exchange's established market infrastructure with distributed ledger-based settlement systems.

The initiative comes as settlement efficiency has drawn increased attention across the U.S. securities industry, which completed its transition to T+1 settlement in May 2024 — reducing the window between trade execution and settlement from two business days to one.

According to Martin, NYSE is also examining how tokenization and onchain payments can enhance market infrastructure. She characterized the work as part of a broader effort to bridge traditional finance with decentralized finance.

NYSE operates under Intercontinental Exchange (ICE), which is developing the platform in conjunction with the exchange. The initiative is intended to support both tokenized versions of traditional securities and digitally native securities. No specific blockchain networks were identified, and the exchange has not yet announced a confirmed launch date for the platform.

DTC Tokenization Pilot Participation

Martin confirmed that NYSE participated in the Depository Trust and Clearing Corporation's (DTC) tokenization pilot in July. The DTCC, which operates the DTC, processes the vast majority of U.S. securities transactions and serves as the central securities depository for the domestic market. The pilot examined how securities could function using tokenized infrastructure. This participation aligns with NYSE's ongoing exploration of blockchain-based settlement for its own market operations.

Record Trading Volume and Market Technology

During her Seoul speech, Martin also discussed NYSE's broader technology infrastructure. She noted that the exchange recorded 3.6 billion shares during its March 20 closing auction, along with $231 billion in nominal trading volume on the same day. Martin attributed the system's performance to sustained investment in market technology.

Extended Trading Hours Approved

Martin said NYSE plans to introduce extended trading hours later this year. The exchange received approval from the U.S. Securities and Exchange Commission (SEC) to move toward 23-hour trading, five days a week. The new schedule is expected to take effect in December.

Martin noted that South Korea moved its won-dollar foreign exchange market to 24-hour trading on July 6, citing it as an example of how technology is reshaping trading, risk pricing, liquidity, and capital access globally.

She emphasized that NYSE wants its future infrastructure to remain safe, stable, scalable, and compliant. The exchange's tokenization work therefore proceeds in tandem with broader changes involving both extended trading hours and blockchain-based settlement.

Source: Crypto Front News