NYSE Tests Avalanche Technology for Tokenized Securities Platform

The New York Stock Exchange (NYSE) has been testing Avalanche blockchain technology for roughly a year while developing a platform for tokenized U.S. stocks and ETFs. Ava Labs President Charley Cooper said the exchange’s evaluation covered both technical performance and the economics of integrating Avalanche into NYSE’s existing systems.

Evaluation Process and Relationship

Cooper described a “close working relationship” between NYSE and Ava Labs. The exchange examined Avalanche’s technology, economics, and the ability of Ava Labs to understand NYSE’s business model and regulatory requirements. While Avalanche meets many of the exchange’s criteria, NYSE has not yet announced a final blockchain selection.

Planned Tokenized Securities Venue

NYSE’s proposed digital venue would combine its Pillar matching engine with blockchain‑based post‑trade infrastructure. Subject to regulatory approval, the platform aims to support tokenized versions of existing securities and assets issued natively on‑chain, offering features such as continuous trading, immediate settlement, fractional shares, dollar‑denominated orders, and stablecoin‑based funding. Token holders would retain traditional shareholder rights, including dividends and governance.

Broader Infrastructure Partnerships

ICE, the parent of NYSE, continues to bring external partners into the project. In August, ICE invested in tZERO and licensed its blockchain patents to support issuance, trading, and settlement of public securities. Earlier, NYSE signed a memorandum with Securitize to act as a digital transfer agent for minting blockchain‑native securities. The platform’s architecture is being designed to work with multiple blockchains for settlement and custody.

Regulatory Context

The U.S. Securities and Exchange Commission recently granted conditional relief for tokenized U.S. stocks, allowing eligible venues to trade them through permissioned automated market makers and liquidity pools. Cooper noted that this regulatory development could accelerate on‑chain stock trading, though he cautioned that major exchanges may adopt the technology at different timelines.

Industry Activity on Avalanche

Avalanche is seeing broader adoption in regulated tokenization projects. Japan’s Progmat migrated its security‑token portfolio, representing over ¥452 billion in assets, to Avalanche’s Layer 1. In South Korea, Hanwha Investment & Securities completed a tokenized securities platform supporting both Avalanche and Hyperledger Besu as the country prepares for blockchain‑based securities markets.