The New York Stock Exchange (NYSE) chose Avalanche for the clearing and registration infrastructure of its planned digital stock platform, while the network’s token, AVAX, was up 8% over the previous 24 hours at the time of publication.
According to an announcement reported by CoinDesk, Avalanche will provide the ledger for the clearinghouse serving an NYSE-affiliated alternative trading platform. The blockchain will therefore be used to record and settle transactions rather than match buy and sell orders.
Stocks could also be issued on other networks
The platform will not require stocks to be issued exclusively on Avalanche. It could also support stock tokens issued on different blockchains, while records of those transactions’ settlement will be maintained on Avalanche infrastructure.
NYSE Head of Digital Issuance Dennis Lee said that transaction speed, predictable costs, and the ability to control participant access were decisive factors in choosing the network.
Regulatory approval required for 24/7 trading
NYSE plans to combine its Pillar trading engine with blockchain-based clearing, settlement, and custody infrastructure. If regulatory approval is granted, the platform is expected to offer 24/7 trading, instant settlement, and funding with stablecoins.
After previously announcing plans to allow voting through a wallet with stock tokens, NYSE has now revealed which network will be used to settle transactions.
Not investment advice.