NYSE taps Securitize to tokenize stocks and ETFs on blockchain

The New York Stock Exchange (NYSE) partnered with Securitize to issue and manage tokenized shares of stocks and exchange-traded funds on a public blockchain. The arrangement, announced Tuesday, is meant to let shares be created, issued and traded in digital form.

Under the partnership, Securitize will oversee the creation and lifecycle management of blockchain tokens that represent traditional equity and ETF shares. The work ties into the NYSE plan outlined in January to build a tokenized securities venue designed for around-the-clock trading.

Securitize runs a platform that converts conventional financial instruments into blockchain-native representations while keeping records linked to the underlying assets. The firm has worked with large institutions, including supporting a tokenized fund issued through its platform by BlackRock.

Supporters of tokenization point to potential operational benefits such as faster settlement, expanded trading windows and lower post-trade friction by moving record-keeping and transfers to blockchains. Exchanges and asset managers are testing ways to connect tokenized instruments with existing market infrastructure. Separate efforts include work by Nasdaq with crypto exchange Kraken to link tokenized equities with decentralized finance networks. Earlier this month, the SEC allowed NYSE to end the 25,000-contract cap on crypto ETF options.

The regulatory framework remains a central factor. The U.S. Securities and Exchange Commission has opened channels for pilot programs and direct industry engagement on how digital securities should be structured and supervised. Commissioner Hester Peirce has encouraged firms studying tokenization to engage early with the agency as market standards develop.

NYSE’s partnership with Securitize provides a component of the infrastructure needed to support tokenized stocks and ETFs. The exchange did not disclose a launch date for the platform or details on which assets may be included.