The New York Stock Exchange (NYSE) is partnering with Securitize to develop its new tokenized stock trading platform.
The two companies announced that they have signed an agreement to build the digital trading platform planned by the New York Stock Exchange.
Tokenization specialist Securitize will act as a design partner, focusing on tracking ownership and handling corporate actions on blockchain rails.
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Securitize, which is backed by large asset managers like BlackRock (NYSE: $BLK), is expected to be among the first companies to mint tokenized versions of stocks on the NYSE platform.
The partnership comes as the New York Stock Exchange and other indices like Nasdaq (NASDAQ: $NDAQ) move to put tokenized stocks on the blockchain rails.
Tokenized versions of stocks will allow 24-hour trading and near-instant settlements, similar to cryptocurrency markets.
Recently, the parent company of the New York Stock Exchange, Intercontinental Exchange (NYSE: $ICE), invested in crypto exchange OKX to develop tokenized stocks and derivative products.
Rival exchange Nasdaq has gained regulatory approval for its tokenized stock trading framework and has turned to cryptocurrency exchange Kraken to distribute stock tokens on its behalf.
Securitize plans to go public this year through a special purpose acquisition company (SPAC).
Shares of Intercontinental Exchange, the parent company of the NYSE, have fallen 11% over the past 12 months to trade at $156.88 per share.