NYSE Tests Avalanche as It Builds Platform to Put $40 Trillion of Stocks and ETFs Onchain

The New York Stock Exchange is working on a tokenized securities platform that could eventually bring roughly $40 trillion worth of U.S. stocks and exchange-traded funds onto blockchain infrastructure, with Avalanche among the networks being evaluated.

Coin Bureau highlighted the development in a post on X, citing reporting from The Block. The NYSE has spent the past year testing Avalanche technology and working with Ava Labs as it assesses how blockchain infrastructure could fit into its existing systems. ICE Head of Strategic Initiatives Michael Blaugrund said, “Avalanche checks a lot of those boxes for us,” according to The Block.

NYSE Develops Onchain Securities Platform

The NYSE announced in January that it was developing a platform for trading and onchain settlement of tokenized U.S. equities and ETFs, subject to regulatory approval. The proposed system combines the exchange’s existing Pillar matching engine with blockchain-based post-trade infrastructure and is designed to support multiple blockchains for settlement and custody.

The platform is intended to support features including round-the-clock trading, fractional share purchases, dollar-denominated orders and immediate settlement using tokenized capital. Stablecoin-based funding is also part of the proposed design.

Tokenized shareholders would retain the same dividend and voting rights associated with conventional shares. The NYSE has also said the planned system could support both tokenized versions of traditionally issued securities and securities issued natively in digital form.

Avalanche Among Networks Being Evaluated

The NYSE has not publicly confirmed Avalanche as the blockchain selected for its final platform.

Ava Labs President Charley Cooper said the exchange has spent the past year testing Avalanche technology and examining markets how it could integrate with NYSE systems. He described the relationship between the companies as close but stopped short of saying that Avalanche had been chosen.

Blaugrund's comments indicate that Avalanche is being seriously evaluated as ICE works through the technology requirements of its planned infrastructure. The Block reported that ICE has been “very engaged” with the Avalanche team as it considers blockchain platforms.

The evaluation comes as the NYSE's parent company, Intercontinental Exchange, works with several companies on the infrastructure needed for tokenized securities. In August, ICE agreed to work with tZERO as a design partner for its planned NYSE-affiliated tokenized securities platform.

Tokenization Push Extends Across Traditional Markets

The NYSE's project is part of a broader move by established financial-market operators toward blockchain-based settlement and trading infrastructure.

In March, the exchange partnered with Securitize to help develop its planned 24/7 tokenized securities platform. Securitize is responsible for technology supporting the creation and management of tokenized shares for stocks and ETFs.

The final blockchain architecture for the NYSE platform remains unresolved. The exchange has said its proposed infrastructure is intended to support multiple blockchains, while its work with Avalanche remains under evaluation.

For now, the NYSE is continuing its testing and development work as it builds toward a regulated platform for tokenized U.S. equities and ETFs.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.