NYSE-Affiliated Tokenized Stock Venue Taps Avalanche

Will the NYSE-affiliated tokenized securities venue settle trades on Avalanche? Yes: Ava Labs said Avalanche will provide the core ledger technology for the venue’s clearing firm, bringing the blockchain into the infrastructure for trading tokenized equities. The platform is designed for round-the-clock trading, clearing and settlement, subject to regulatory approval, according to Ava Labs’ announcement on Nov. 9.

What role will Avalanche play in the venue?

Avalanche will underpin the ledger that records and settles trades; the announcement does not say it will run the entire trading venue. NYSE Head of Digital Issuance Dennis Lee said the platform will support equities listed on multiple blockchains, while its settlement ledger must offer speed, predictable costs and control over who can participate. That makes Avalanche the chosen settlement layer, while assets may originate on other networks.

Will it use Avalanche’s public blockchain?

No: NYSE plans to use a custom blockchain built with Avalanche technology, CoinDesk reported after interviewing Ava Labs Chief Business Officer John Nahas. The custom network is intended to meet the platform’s regulatory and operational needs, rather than settling trades on Avalanche’s public chain. Nahas told CoinDesk the selection followed more than a year of technical, business and ecosystem reviews.

What must happen before the platform launches?

Regulatory approval is still required before the venue can offer its planned services. The announcement gives no launch date, so the 24/7 design remains a plan rather than a live market. Watch for the regulatory decision and any confirmed launch timetable.

References

• Ava Labs’ announcement — prnewswire.com