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Archive photo · 29 June 2024NYSE-Affiliated Venue Plans Tokenized Stock Trading Using Avalanche Ledger
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Avalanche will serve as the ledger for clearing and settlement of tokenized stocks. The venue aims for around-the-clock trading and immediate settlement upon execution.
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NYSE picks Avalanche
Avalanche will serve as the ledger for the clearing firm of a planned NYSE-affiliated trading venue for tokenized stocks, Ava Labs said in a Nov. 9 announcement.
The venue is designed for continuous trading, clearing, and settlement, pending regulatory approval, and it will use Avalanche as its blockchain to create “dedicated infrastructure” for clearing.
Dennis Lee, head of digital issuance at NYSE, said the venue will trade stocks issued on various blockchains with Avalanche running the ledger that settles them.
AVAX rose as much as 10% on the news, and CoinGecko data showed AVAX later easing to $8.86 as of 03:22 p.m. UTC on Nov. 9.
Ava Labs also said the clearing system “will be built on top of Avalanche technology,” while the Avalanche Foundation called the move “an important milestone in bringing global financial markets onchain.”
How settlement is split
The planned platform will combine NYSE’s Pillar matching engine with blockchain-based post-trade systems, and it will settle each trade the moment it executes instead of a day or two later. Dennis Lee described the ledger that records and settles trades as needing to be “fast and reliable,” while he said the exchange wanted “let us control who can take part, keep costs predictable, and have a large community of developers behind it.” Ava Labs said the NYSE will use Avalanche’s blockchain to keep track of stock trades and help complete transactions on its planned trading platform.
The proposed system can accommodate multiple blockchains for settlement and custody, but Avalanche is positioned as the ledger for the clearing process after Pillar matches orders. Altcoin Buzz and Cointelegraph both tied the move to AVAX’s jump, with Altcoin Buzz citing Bloomberg and Avalanche’s official blog for Avalanche’s role in the clearing process.
Regulatory timing and stakes
The venue still needs regulatory approval, and The Wall Street Journal reported it could launch before the end of 2026 if it gets one.
TokenPost said the proposed venue would offer 24-hour trading in tokenized U.S. stocks and exchange-traded funds, subject to regulatory approval, and it said the ledger would support recording and settlement of trades after Pillar matches orders.
Ava Labs said the exchange spent about a year testing Avalanche, and the final pick was not confirmed until Monday, according to Cointelegraph.
KuCoin's Huo Xing Finance reported AVAX was trading at approximately $8.78 on Nov. 9, up over 9.5% since the news broke, with an intraday high of around $8.88.
The announcement did not name a launch date in the 24/7 Wall St. account, and it also did not mention the AVAX token as an asset for settlement, fees, or staking in that same coverage.
