The New York Stock Exchange’s (NYSE) planned tokenized stock trading platform is set to use the Avalanche ($AVAX) network as its core ledger for clearing and settling trades, giving the blockchain a central role in Wall Street’s push to move equities onchain.
Avalanche will provide the ledger technology to the clearing firm supporting the upcoming NYSE-affiliated alternative trading system (ATS), according to a Monday press release. The venue plans to support trading and settlement around the clock, pending regulatory approval.
Crucially, Avalanche won’t be the only blockchain involved. The platform is designed to support stocks issued on a range of networks, while using Avalanche to record and settle trades, the press release said.
“At the NYSE, we’re looking at how blockchain technology can expand what we offer in equities, and we’re picking the right technology for each job,” Dennis Lee, head of digital issuance at NYSE, said in a statement.
He said the exchange needed a settlement ledger that could process transactions fast, keep costs predictable and control who could participate.
$AVAX, the native token of the Avalanche network, rallied on the news and was up 8% in the past 24 hours.
Wall Street’s tokenization race
The Avalanche deal adds another piece to the NYSE’s tokenized securities plans as Wall Street firms race to build out their blockchain-based infrastructure.