A Market That Never Sleeps: NYSE Enters The Blockchain Era With 24/7 Trading

The New York Stock Exchange (NYSE), a unit of entity Intercontinental Exchange (ICE), has announced the development of a new blockchain-based digital platform that allows for trading tokenized securities and the ability to conduct settlements on the blockchain itself. This initiative represents a significant step of the market toward further adopting cryptocurrency into the financial sector. Bridging traditional finance with blockchain technology will enable features long associated with cryptocurrency markets, such as having trading available at all hours, all year round.

Key Features of the Platform

• 24/7 Trading: Unlike the standard NYSE trading hours (limited to weekdays and closed on certain holidays), the new platform is designed to support continuous, round-the-clock operations for tokenized U.S.-listed equities and Exchange Traded Funds (ETFs).
• Instant Settlement: Trades would settle on the blockchain in real time, eliminating the current T+1 settlement cycle and reducing counterparty risk and capital inefficiencies.
• Additional Capabilities: Includes fractional share trading, orders sized in dollar amounts (rather than whole shares), and supports stablecoin-based funding to facilitate easier participation.
• Hybrid Design: The platform combines NYSE's established Pillar matching engine for order execution with blockchain-based post-trade systems (including multi-chain settlement and custody options). It will support tokenized shares that are fungible with traditionally issued securities, as well as natively issued digital securities.

The platform is still subject to regulatory approvals from bodies such as the SEC, with no confirmed launch date — timing will depend on securing the necessary approvals. This move aligns with broader Wall Street momentum toward tokenization, as major institutions (including JPMorgan, Bank of New York Mellon, Goldman Sachs, and others) have increasingly explored or launched tokenized funds and assets in recent years.

Implications for Businesses and Investors

• For Issuers and Companies: Tokenization could streamline capital raising, enable more efficient issuance of securities, and provide access to a global, always-on investor base—potentially reducing costs and expanding liquidity. Tokenized shareholders will also participate in traditional shareholder dividends and governance rights.
• For Investors: The shift to 24/7 trading removes time-zone barriers, allowing participation from anywhere at any time. Instant settlement and fractional ownership could lower entry barriers, improve portfolio flexibility, and enhance overall market accessibility, particularly for retail and international participants.
• Broader Market Impact: As this development signals further mainstream adoption of blockchain in regulated securities markets, it may accelerate the convergence of traditional equities with digital assets. It may also pressure other exchanges, such as NASDAQ, the London Stock Exchange, and Tokyo Stock Exchange, to innovate similarly, while highlighting ongoing regulatory evolution around tokenized assets and stablecoins.

While this is still in the planning and approval stage, it underscores the NYSE's strategy to evolve its infrastructure for the "new era of global finance," as described by ICE executives. Businesses and investors monitoring digital asset trends should watch for updates on regulatory progress, as approval could mark a pivotal advancement in 24/7, on-chain equity trading.

Forward-thinking companies should begin assessing the implications of tokenization now, including how tokenized shares can remain compliant with existing securities laws, custody and transfer agent frameworks, as well as identifying corporate governance requirements. This includes addressing blockchain specific risks related to tax, AML/KYC, and international regulatory considerations.

Lewis Brisbois is well-positioned to guide companies through this transition by conducting readiness assessments of current share structures, advising on compliant tokenization models that preserve fungibility, drafting and updating necessary disclosures and governance documents, and monitoring SEC developments to provide tailored regulatory strategy as approvals and market infrastructure develop.

Lewis Brisbois' attorneys will continue to track developments and provide updates as more details emerge. For more information, contact the author or editors of this alert. Visit our Government Investigations and White Collar Defense page for additional alerts in this area.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.