The New York Stock Exchange (ICE) is partnering with tokenization specialist Securitize to help design the infrastructure behind trading tokenized securities, according to a press release shared Tuesday with CoinDesk.
Securitize aims to go public this year via a SPAC deal with Cantor Equitize Partners (CEPT). CEPT shares are 6% higher premarket. ICE shares are stable.
The two companies signed a memorandum of understanding to build the NYSE’s planned digital trading platform. Securitize will serve as a design partner, focusing on how transfer agents – the entities that track ownership and manage securities transactions – operate when securities are issued and settled on blockchain rails.
Securitize, backed by major asset managers like BlackRock and Ark Invest and registered with the SEC as a transfer agent, is expected to be among the first eligible companies to create tokenized versions of stocks and ETFs on the platform, subject to regulatory approvals.
The company’s broker-dealer arm could also participate in trading, giving it a place in both issuance and market activity.
The move comes as traditional exchange giants like the NYSE and Nasdaq are doubling down on tokenization efforts to integrate blockchain rails into stock trading. This technology would enable 24-hour trading and near-instant settlements, similar to crypto markets.
Recently, Intercontinental Exchange, parent company of the NYSE, invested in crypto exchange OKX to develop tokenized stocks and derivatives products. Rival exchange Nasdaq has won regulatory approval for its tokenized stock trading framework and has tapped Kraken to distribute stock tokens globally.
“As we explore how tokenization can improve capital markets, it is essential that new infrastructure is developed in a way that preserves the trust, transparency and protections that investors have come to expect,” said Lynn Martin, president of the NYSE Group.
Read more: Here’s why Nasdaq and the owner of the NYSE are putting the $126 trillion stock market on the blockchain
