The New York Stock Exchange (ICE) is partnering with tokenization specialist Securitize to help design the infrastructure behind trading tokenized securities, according to a Tuesday press release shared with CoinDesk.
Securitize aims to go public this year through a SPAC deal with Cantor Equitize Partners (CEPT). CEPT shares rose 6% premarket. ICE shares remain stable.
The two companies signed a memorandum of understanding to build the NYSE’s planned digital trading platform. Securitize will act as a design partner, focusing on how transfer agents (the entities that track ownership and handle corporate actions) operate when securities are issued and settled on blockchain rails.
Securitize, backed by large asset managers such as BlackRock and Ark Invest and registered with the SEC as a transfer agent, is expected to be among the first companies eligible to mint tokenized versions of stocks and ETFs on the platform, subject to regulatory approvals.
The company’s brokerage arm could also participate in the operations, giving it a foothold in both issuance and market activity.
The move comes as traditional exchange giants like NYSE and Nasdaq are redoubling their tokenization efforts to bring blockchain rails to stock trading. That technology would allow for 24-hour trading and near-instant settlements, similar to crypto markets.
Recently, Intercontinental Exchange, parent of the New York Stock Exchange, invested in the OKX cryptocurrency exchange to develop tokenized stocks and derivative products. Rival exchange Nasdaq has gained regulatory approval for its tokenized stock trading framework and has turned to Kraken to distribute stock tokens globally.
“As we explore how tokenization can improve capital markets, it is critical that new infrastructure be developed in a way that preserves the trust, transparency and protection that investors expect,” said NYSE Group President Lynn Martin.
Read more: Here’s why Nasdaq and the owner of the NYSE are putting the $126 trillion stock market on blockchain
