New York Stock Exchange Bets on Blockchain: “A 24-Hour Nonstop Market Is Coming”

▲ New York Stock Exchange (NYSE), blockchain/ChatGPT-generated image

The New York Stock Exchange (NYSE) is accelerating the adoption of a blockchain-based on-chain system, marking a transformative turning point that could fundamentally reshape trade execution and settlement processes in traditional financial markets.

According to reports on Feb. 24 (local time), Intercontinental Exchange (ICE), the parent company of the NYSE, is stepping up efforts to build next-generation financial infrastructure centered on securities tokenization, 24-hour trading, and on-chain settlement. Analysts suggest that this move goes beyond simply embracing virtual assets; it represents a broader strategy to modernize infrastructure by leveraging blockchain to enhance collateral management efficiency and address persistent delays in existing settlement systems.

The new platform is characterized by the separation of trade execution and settlement. ICE plans to maintain its existing high-capacity matching engine as the trading layer while deploying blockchain technology primarily to improve efficiency in post-trade processes such as settlement, record-keeping, and reconciliation. Tokenized securities will operate under existing securities laws in terms of legal rights, while ownership records are maintained on the blockchain, aiming to achieve both regulatory compliance and technological innovation.

The introduction of on-chain settlement eliminates the complex reconciliation processes between intermediaries that have long burdened traditional financial markets, enabling delivery versus payment (DvP), where ownership transfer and payment occur simultaneously. This significantly reduces counterparty risk and frees up substantial capital previously tied up as margin. However, the shift to real-time settlement may reduce the time available for markets to correct errors or respond to liquidity strains, placing greater emphasis on participants’ ability to secure funds instantly.

ICE is also considering the use of stablecoins as a payment method for trade settlement. This would enable low-cost, cross-border transactions around the clock without being constrained by bank operating hours, aligning seamlessly with a 24/7 trading system. In this model, stablecoins would function not as speculative assets but as institutional wholesale settlement tools, likely subject to stringent regulatory requirements for asset segregation and liquidity assurance.

Ultimately, the NYSE’s initiative symbolizes blockchain’s emergence as a core technology within mainstream financial markets. For successful implementation, institutional enhancements such as clear definitions of legal ownership and delineation of custodial responsibilities must be established. If blockchain-based systems prove capable of supporting the massive trading volumes and stability requirements of listed equities, the convergence of traditional finance and the on-chain ecosystem is likely to become an irreversible trend.

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