The New York Stock Exchange (NYSE) is developing an on-chain settlement platform designed to support tokenized securities. This is a significant step towards integrating blockchain technology with traditional finance (TradFi). NYSE President Lynn Martin confirmed the initiative during a keynote speech in Seoul on early Monday.

Lynn Martin discussed the development at a seminar focused on advancing South Korea’s capital markets. She also noted that the NYSE participated in the Depository Trust Company’s (DTC) tokenization pilot in July. The initiative reflects the exchange’s broader efforts to explore blockchain-based infrastructure for financial markets. She further added that NYSE is examining how on-chain technology could support global market infrastructure.

NYSE Explores Blockchain-Based Market Infrastructure

The planned platform is expected to focus on the on-chain settlement of tokenized securities. The initiative forms part of the NYSE’s efforts to modernize market infrastructure. The exchange has increasingly explored the potential role of blockchain technology in traditional financial markets. Earlier, the NYSE publicly outlined plans for a digital platform that could support the trading and on-chain settlement of tokenized U.S. equities and exchange-traded funds (ETFs).

The proposed platform could eventually support features such as 24/7 market operations, fractional share trading, faster settlement, and stablecoin-based funding. However, this is entirely subject to regulatory approval. The system is also expected to combine the NYSE’s existing Pillar matching engine with blockchain-based infrastructure.

DTC Tokenization Pilot Supports Broader Industry Shift

The participation of NYSE in the DTC tokenization pilot further highlights its growing interest. The pilot, which operates under an SEC staff no-action letter, allows certain securities to be represented as tokens on approved blockchains, only for trial basis. Eligible assets include securities associated with the Russell 1000 and major index ETFs.

The NYSE’s latest plans come as financial institutions are seriously examining tokenization to modernize trading and settlement of traditional assets. The development of on-chain settlement infrastructure could therefore contribute to the broader integration of blockchain technology into global capital markets.