NYSE picks Avalanche for tokenized securities settlement

Ava Labs announced the selection on November 9. Avalanche will record and settle transactions through the platform’s clearing firm; the trading venue is designed to support equities issued on multiple blockchain networks.

NYSE Head of Digital Issuance Dennis Lee said the exchange assessed transaction reliability, predictable costs, controls on network participation and access to a developer ecosystem. “Avalanche meets all those needs,” he said. The decision followed roughly a year of testing and discussions between Ava Labs and NYSE parent Intercontinental Exchange (ICE), including an examination of technical and commercial requirements.

The platform was first announced in January. NYSE plans to combine its Pillar matching engine with blockchain-based post-trade processing. It is designed to support tokenized US equities and exchange-traded funds, including digital representations of conventional shares and securities issued directly as tokens. Investors would be able to place orders in dollar amounts, buy fractional shares and fund transactions with stablecoins. NYSE says eligible tokenized shareholders would retain rights including dividends and corporate governance participation.

Access is planned through qualified broker-dealers, with the exchange seeking to maintain established securities-market requirements. ICE is also working with BNY and Citi on tokenized deposits intended to help clearing members transfer funds and meet margin requirements outside regular banking hours.

The settlement choice comes as NYSE assembles other parts of the platform. On November 2, it added Broadridge Financial Solutions, Computershare, Equiniti and Superstate to its transfer-agent partners, joining Securitize and tZERO. Broadridge, Computershare and Equiniti collectively serve nearly 5,000 listed companies, including approximately 99% of S&P 500 constituents. Their work includes maintaining shareholder records, processing ownership changes and supporting corporate actions. ICE had reached a separate agreement with tZERO in August on platform development, blockchain patent licensing and an investment in the company’s financing round.