Summary

  • Ava Labs said Avalanche had been selected as the core ledger technology for the tokenized securities platform being developed by ICE, NYSE’s parent company.
  • The platform was designed to support 24-hour trading, clearing and settlement of tokenized securities, subject to regulatory approval.
  • Experts said caution is warranted in linking the news to gains in the Avalanche token price or expectations for increased activity on the public C-Chain, because NYSE transactions will be handled on dedicated Avalanche infrastructure.

Forecast Trend Report by Period

The New York Stock Exchange has chosen the Avalanche blockchain as the core infrastructure for a tokenized securities trading platform.

Ava Labs said on November 11, citing Decrypt, that Avalanche had been selected as the core ledger technology for the platform being developed by Intercontinental Exchange Inc., NYSE’s parent company. The platform is designed to support 24-hour trading, clearing and settlement of tokenized securities, subject to regulatory approval.

Carlos Guzman, a research analyst at market maker GSR, told Decrypt the decision to use Avalanche for settlement technology marks a major step forward for institutional credibility. He said it demonstrates the benefits blockchain can bring to traditional financial infrastructure, including instant settlement and programmability.

Luther Maday, head of North America at crypto payments firm Mercuryo, said NYSE’s choice of Avalanche after about a year of testing signals that it met requirements for performance, stability and control. He added that the move represents a deeper level of adoption because it goes beyond issuing tokenized assets and applies blockchain across the entire clearing and settlement layer.

Still, experts were cautious about whether the adoption would translate into gains for the Avalanche token. Guzman said NYSE transactions would be processed on dedicated Avalanche infrastructure rather than the public C-Chain, meaning the news should not be too quickly linked to expectations for increased activity on the public C-Chain.

JOON HYOUNG LEE