The New York Stock Exchange has spent about a year testing Avalanche blockchain technology as it develops plans for tokenized U.S. stocks and exchange-traded funds, according to Ava Labs President Charley Cooper, whose company develops the Avalanche blockchain. NYSE's parent company, Intercontinental Exchange (ICE), has also been assessing how Avalanche could fit into its planned tokenized securities infrastructure.

Cooper disclosed the testing on Thursday during the Avalanche Summit, a conference held in New York. He said NYSE has been examining how Avalanche's technology could connect with the exchange's existing systems as the tokenization project takes shape.

The work has gone well beyond technical testing. According to Cooper, NYSE also questioned Ava Labs about its business model and whether the company understood the commercial needs of a major exchange. The scope of that vetting offers a window into the level of scrutiny major market operators are applying before connecting regulated securities infrastructure to a blockchain.

🚨The NYSE spent the past year testing Avalanche technology for its tokenization plans, according to Ava Labs President Charley Cooper. The tokenization race is officially heating up. pic.twitter.com/ccOx12ykXI

— Phoenix Trading Desk (@investorphoenix) September 18, 2026

Neither NYSE nor ICE has publicly confirmed that Avalanche has been selected as the underlying network for the platform.

Cooper described the relationship between Ava Labs and ICE as close. He stopped short, however, of saying that Avalanche had been chosen for the tokenization project.

NYSE Evaluates Avalanche for Tokenized Stocks

Michael Blaugrund, ICE's Head of Strategic Initiatives, also addressed the relationship during the Avalanche Summit. Blaugrund said ICE was very engaged with the Avalanche team while it assessed different blockchain platforms, adding that Avalanche met many of the requirements ICE was examining.

NYSE first announced its tokenized securities plans in January. At the time, the exchange said it was developing a platform for the trading and onchain settlement of U.S. equities and ETFs, a proposed system that remains subject to regulatory approval before it can go live.

Under the proposal, NYSE intends to pair its existing Pillar matching engine with blockchain-based systems that handle processes after a trade is completed. Notably, the planned platform is designed to support more than one blockchain for settlement and custody, which means Avalanche is one of several technologies being assessed rather than a confirmed selection.

In August, ICE announced a separate agreement with tZERO, naming the trading platform as a design partner for the infrastructure supporting the planned NYSE-affiliated tokenized securities market. Despite the partnerships, ICE has still not publicly named which blockchain or blockchains will ultimately support the platform.

Tokenization Extends Into Stock Market Infrastructure

Tokenization allows traditional assets such as company shares to be represented and transferred using blockchain infrastructure. NYSE's plans would apply the technology to U.S. stocks and ETFs, with the exchange's established trading engine remaining at the center of the system rather than being replaced.

Cooper also discussed the possibility of longer trading hours for tokenized securities. He said some venues could begin offering 24-hour weekday trading within the next year, though it was unclear whether the first venues to do so would include major exchanges such as NYSE, the London Stock Exchange, or CME. Blockchain networks operate around the clock, a contrast with the fixed trading sessions of traditional equity markets.

He also pointed to an innovation exemption announced Thursday by the U.S. Securities and Exchange Commission (SEC), the same day Cooper spoke at the summit, which he said permits certain forms of onchain trading involving tokenized stocks.

For now, ICE continues to evaluate blockchain providers while working with tZERO on the broader design of the platform, leaving open the question of which network will ultimately be chosen. Avalanche has completed a year of testing with the exchange operator, but NYSE has not confirmed that it will use the network for its planned tokenized securities platform.

Source: CoinCentral