NYSE, DTCC developing blockchain-based securities trading

Core Insights - The New York Stock Exchange (NYSE) and the Depository Trust & Clearing Corp (DTCC) are developing platforms for 24/7 trading on a blockchain, reflecting the growing integration of stablecoins into the traditional financial system and increasing support for blockchain technology in Washington [1][8] Group 1: Tokenization and Trading Infrastructure - There has been a historical lack of viable on-chain payment assets that can serve as counterparts to tokenized assets, which has hindered the full potential of tokenization [2] - Current tokenized securities platforms are basic and often do not match the features of traditional off-chain offerings, lacking functionalities such as dividend transfers, proper tax tracking, and voting rights [4] - The NYSE's new platform will enable 24/7 trading of U.S. listed equities and ETFs, incorporating blockchain for immediate on-chain settlement and allowing orders to be priced in both dollars and stablecoins [5][6] Group 2: Regulatory Developments and Future Outlook - The DTCC has received a no-action letter from the SEC, allowing it to tokenize real-world assets on pre-approved blockchains for three years, with plans to roll this out in the second half of the year [9][10] - The potential benefits of tokenizing the U.S. securities market include collateral mobility, new trading modalities, and programmable assets, contingent on robust market infrastructure [11] - Industry experts predict that by 2026, significant advancements will be made in on-chain trading, with major players in the ecosystem working to address existing challenges [14]