NYSE Parent ICE seeks approval for blockchain-based trading of US equities

Intercontinental Exchange Inc (ICE), the parent company of the New York Stock Exchange, has unveiled plans to launch a blockchain-enabled platform for trading and on-chain settlement of tokenised securities, marking a significant step by a traditional market operator into digital market infrastructure. 

The proposed platform, which is subject to regulatory approval, is designed to support round-the-clock trading of US-listed equities and exchange-traded funds (ETFs). It would allow instant settlement, dollar-sized orders, fractional share trading and stablecoin-based funding — features aimed at addressing long-standing frictions in equity markets. 

According to ICE, the system combines the NYSE’s existing Pillar matching engine with blockchain-based post-trade settlement technology and is capable of operating across multiple settlement chains. If approved, it would underpin a new NYSE venue for tokenized shares that are fully fungible with traditionally issued securities. 

Tokenised shareholders would retain the same economic and governance rights as conventional investors, including dividends and voting rights. The venue is expected to offer non-discriminatory access to all qualified broker-dealers, aligning with established principles of US market structure. 

The initiative forms part of ICE’s broader digital strategy, which includes upgrading its clearing infrastructure to support 24/7 trading and exploring the use of tokenised collateral. As part of this effort, ICE is working with major banks such as BNY and Citi to enable tokenized deposits across its clearinghouses. These deposits are intended to help clearing members manage funds and margin requirements outside standard banking hours. 

Investor demand for near-continuous trading in US equities has increased sharply in recent years, driven by global participation in US markets and the growth of digital trading platforms. Regulators have responded by introducing new rules and approving proposals that allow exchanges to extend trading beyond traditional market hours. 

ICE’s move highlights how established market operators are increasingly experimenting with blockchain-based infrastructure to modernise settlement processes and reduce operational bottlenecks. The platform will also support tokens natively issued as digital securities, alongside tokenized versions of traditionally issued shares, ICE said. 

The announcement comes amid intensifying competition among US exchanges. Nasdaq, NYSE’s main domestic rival, disclosed in December that it plans to facilitate nearly round-the-clock trading for stocks and exchange-traded products, reflecting the increasingly global nature of investor behaviour. 

If approved, ICE’s tokenized securities platform could represent one of the most significant integrations of blockchain technology into mainstream US equity markets to date.