Avalanche Lands a Role in NYSE’s Planned Tokenized Stock Venue, Ava Labs Says

The clearing firm for the New York Stock Exchange’s planned tokenized securities venue will keep its books on Avalanche, Ava Labs, the company that builds the blockchain, announced on Monday.

The venue is an alternative trading system (ATS), a regulated market for trading securities that is not itself a stock exchange, and an NYSE affiliate is building it. The release says the ATS “will use Avalanche as its blockchain,” with Avalanche providing core ledger technology to the venue’s clearing firm, which the release does not name. Subject to regulatory approval, the platform is designed for 24/7 trading, clearing and settlement for its subscribers. No launch date was given.

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Dennis Lee, NYSE’s head of digital issuance, said in the statement shared by Ava Labs that the exchange is “picking the right technology for each job,” and that the venue “will support equities listed on a range of blockchains.” The ledger that records and settles those trades, Lee said, has to be fast, let the operator decide who participates, keep costs steady and have a big developer base behind it. “Avalanche meets all those needs,” he said.

Ava Labs CEO Emin Gün Sirer said in the same release that the platform’s “24/7 atomic settlement needs” would be met with “dedicated infrastructure with predictable performance and costs,” along with controls to meet regulatory requirements. Atomic settlement means the asset and the payment change hands together in a single step.

NYSE, which is owned by Intercontinental Exchange (ICE), unveiled the platform in January, saying it would run orders through its Pillar matching engine, the system that pairs buy and sell orders, and settle them on blockchains, with support for more than one chain. That release named no network. In March, NYSE signed a memorandum of understanding with tokenization firm Securitize, naming it the first digital transfer agent eligible to issue tokenized securities on the venue, Unchained reported.

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