The New York Stock Exchange’s upcoming tokenized stock trading platform is prepared to employ the Avalanche network as its primary ledger for clearing and settling trades, granting the blockchain a pivotal position in Wall Street’s migration of equities onchain.
Based on a Monday press release, Avalanche will supply the ledger technology to the clearing entity supporting the soon-to-launch NYSE-associated alternative trading system. Subject to regulatory approval, the marketplace intends to provide continuous trading and settlement around the clock.
Rather than utilizing Avalanche’s public blockchain for settlement, the NYSE will run a dedicated custom blockchain created on Avalanche’s technology to suit the platform’s regulatory requirements, John Nahas, chief business officer at Ava Labs, stated in an interview with CoinDesk.
Avalanche functions as a blockchain ecosystem that permits organizations to construct networks tailored to their specific demands. Utilizing its Ava Cloud service, enterprises can deploy their individual blockchains and configure operational rules, such as access permissions. Ava Labs designs the underlying technology and development tools for these networks.
“This has been over a year in the coming,” Nahas remarked, noting that the exchange and Ava Labs completed rigorous technical, business, and ecosystem evaluations prior to the decision.
Dennis Lee, head of digital issuance at the NYSE, explained that the exchange required a settlement ledger capable of rapid transaction speeds, predictable costs, and strict participant access control.
“At the NYSE, we’re examining how blockchain technology can broaden our equities offerings, and we’re choosing the proper technology for each specific task,” he stated in an announcement. “Avalanche satisfies all those criteria.”
Significantly, Avalanche will not operate as the sole blockchain involved. The platform is engineered to accommodate equities issued across various networks, interfacing with the NYSE’s proprietary Avalanche chain to log and clear transactions.
The native token of the Avalanche ecosystem, AVAX, experienced an upward movement following the announcement, gaining 8% over the preceding 24 hours.
Wall Street’s tokenization race
The agreement with Avalanche introduces an additional component to the NYSE’s tokenized securities strategy amidst a broader competition among Wall Street institutions to develop blockchain-backed infrastructure.
Last week, the exchange broadened its network of transfer agents to encompass six entities, incorporating Broadridge Financial Solutions, Computershare, Equiniti, and Superstate alongside existing collaborators Securitize and tZERO. Equiniti is currently involved in an acquisition agreement with CoinDesk parent company Bullish.
The NYSE does not intend to transition every facet of equity trading onto a singular blockchain. Its scheduled platform will combine the exchange’s Pillar matching engine with blockchain-powered clearing, settlement, and custody, targeting 24/7 trading capabilities, instant settlement, and stablecoin-denominated funding.
Nasdaq, a competitor to the NYSE, is also formulating tokenized stock systems, which features a collaboration with crypto exchange Kraken’s parent company to distribute blockchain-based shares internationally.
In parallel, the Depository Trust & Clearing Corporation, positioned at the core of U.S. securities custody and settlement, debuted a tokenization offering last month utilizing its proprietary Besu blockchain and the Canton Network. Unlike the exchange-led initiatives, the DTCC offering concentrates on custody and transfers instead of functioning as a trading venue.
An alternative framework is developing through the Securities and Exchange Commission’s innovation exemption, which establishes a pathway for designated blockchain-based marketplaces to trade tokenized equities via automated market makers, allowing issuers the option to decline.
One such initiative features crypto platform OKX and Intercontinental Exchange, the parent company of the NYSE. That marketplace operates independently from the NYSE-linked tokenized equity platform.
Originally published at https://www.coindesk.com/business/2026/11/09/nyse-picks-avalanche-to-settle-tokenized-stocks-amid-wall-street-s-blockchain-race.
