NYSE affiliate selects Avalanche for tokenized stock settlement
Ava Labs says Avalanche will power clearing and settlement for an NYSE-linked tokenized securities venue, designed for round-the-clock trading pending approval.
The Blockheight Editors··2 min read
Ava Labs said on Nov. 9 that Avalanche will provide the ledger technology for clearing and settling trades on an upcoming NYSE-affiliated tokenized securities platform. The venue is designed for 24/7 trading, clearing and settlement, subject to regulatory approval, according to Ava Labs’ announcement.
The platform is an alternative trading system, or ATS. Ava Labs said Avalanche will supply core ledger technology to the platform’s clearing firm; the announcement did not give a launch date or name that firm.
What role will Avalanche play in the venue?
Avalanche will underpin the ledger that records and settles trades, while the venue is designed to support equities issued on multiple blockchains, according to Ava Labs and CoinDesk’s report. CoinDesk reported, citing Ava Labs Chief Business Officer John Nahas, that NYSE plans to use a custom blockchain built with Avalanche technology rather than the public Avalanche network for settlement.
NYSE Head of Digital Issuance Dennis Lee said in Ava Labs’ announcement that the exchange assessed technology for different jobs. He said the settlement ledger needs speed, reliability, predictable costs and control over participation; Ava Labs said Avalanche met those requirements.
How does the settlement fit with NYSE’s trading plans?
The NYSE-affiliated platform is being developed for tokenized securities and round-the-clock operation, according to the announcement. CoinDesk reported that the system will pair the NYSE’s Pillar trading engine with blockchain-based clearing, settlement and custody.
The multi-chain design means equities may be issued on different networks while trades are recorded and settled on the Avalanche-based ledger, CoinDesk reported. Ava Labs’ announcement did not specify which equities or blockchains will be supported.
What happens before the platform can launch?
The platform remains subject to regulatory approvals, Ava Labs said. The announcement did not specify an approval timetable, launch date or operating details such as eligible participants; those remain unconfirmed.
Source material
- Ava Labs’ announcement — prnewswire.com
- CoinDesk’s report — coindesk.com