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NYSE President states that the exchange recognized its ‘duty’ to engage in the tokenization sector.
The exchange is anticipated to initiate 24/7 trading of tokenized assets later this year.
NYSE President Lynn Martin speaking on stage at the World Liberty forum. (CoinDesk)
Key points:
- New York Stock Exchange President Lynn Martin expressed that the exchange has a duty to participate in tokenization as blockchain finance continues to grow.
- The NYSE has created tokenization technology and is collaborating with regulators to assess how tokenized assets might integrate into the current financial structure.
- The exchange is preparing to launch a blockchain-based platform that could facilitate 24/7 trading of tokenized stocks and ETFs later this year, although a specific launch date or detailed strategy has not been disclosed.
PALM BEACH, Fla. — In light of the increasing influence of blockchain finance, New York Stock Exchange (NYSE) President Lynn Martin stated she recognizes a “responsibility” to engage in tokenization.
“We’ve felt the obligation to participate in the tokenization discussion,” Martin noted during her address at the World Liberty forum in Palm Beach on Wednesday. The exchange has already developed its tokenization technology and is working with regulators to determine its application within the existing financial framework, she added.
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Tokenization involves converting physical assets such as stocks or bonds into blockchain-based tokens, allowing for quicker settlement, continuous trading, and more programmable financial offerings.
“We’ve learned from challenges,” Martin remarked, alluding to previous stress points in traditional markets concerning liquidity and stability. “We’re applying those insights.”
While the cryptocurrency ecosystem has traditionally functioned on a 24/7 basis, the NYSE is preparing to introduce a blockchain-driven platform later this year that would facilitate continuous trading of tokenized stocks and ETFs, pending regulatory approval, diverging from its conventional 6.5 hour, five-day-a-week trading schedule.
The exchange has yet to announce a launch date or detailed strategy as of the current reporting.
"It's a moment we have to seize as regulators," stated Commodity Futures Trading Commission Chairman Michael Selig during the same panel.
While previous administrations had "discouraged" the development of new tools and products, Selig emphasized, "I want that to be very clear, we stand ready to collaborate with incumbents, newcomers, old technologies, and new technologies."
