The New York Stock Exchange (NYSE) has officially selected the Avalanche blockchain as the core ledger provider for clearing and settling tokenized securities transactions. The announcement from Ava Labs marks the US exchange’s preparation to roll out a digital alternative trading system (ATS) operating 24 hours a day, 7 days a week (24/7).
The digital alternative trading system (ATS) is designed to facilitate the trading of US stocks and ETFs outside conventional market hours. Notably, Avalanche’s role is focused on the post-trade layer: the technology serves as the clearing agency ledger to record and process on-chain transactions. Meanwhile, the trading venue is prepared to accommodate equities issued across multiple blockchain networks.
12-Month Evaluation by Intercontinental Exchange
The selection of Avalanche was not an overnight decision. Exchange parent Intercontinental Exchange (ICE) conducted an in-depth 12-month technical and commercial evaluation before making its choice.
NYSE Head of Digital Issuance Dennis Lee noted that Avalanche stood out for execution reliability, predictable transaction fees, control over network participation permissions, and the maturity of its developer ecosystem. On the tech provider side, Ava Labs Founder and CEO Emin Gün Sirer emphasized that the infrastructure design was tailored specifically to meet operational and regulatory compliance standards for institutional capital markets.
Fractional Share Trading and Stablecoin Funding
The concept for the tokenized securities platform was first announced by the NYSE in January 2026. The exchange pairs its proprietary Pillar order-matching engine with a blockchain-based post-trade foundation to combine high-speed execution with digital recordkeeping.
This framework offers greater flexibility for investors: market participants can trade fractional shares, place US dollar-denominated orders, and deposit funds using stablecoins. Shareholder rights remain fully protected through dividend payouts and corporate governance rights equivalent to holding traditional shares.
Regulatory Approval and Off-Hours Liquidity
While the architecture is ready, the trading platform’s rollout is still pending approval from US regulators. In addition, trading access will initially be restricted and only accessible to investors through licensed broker-dealers.
ICE is also addressing banking liquidity requirements outside normal business hours. The exchange parent has partnered with BNY and Citi to develop tokenized deposits, facilitating fund transfers and clearing margin settlements when bank branches are closed at night or on weekends.
For market participants looking forward to non-stop stock trading, the platform enables round-the-clock equity trading, though its full operation remains contingent on regulatory approval.
Reported via crypto.news.
Read also: Morgan Stanley Tokenizes US Stocks via $114 Trillion Custodian - Public Access Set for 2027
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
