The New York Stock Exchange (ICE) is teaming up with tokenization specialist Securitize to help design the infrastructure behind tokenized securities trading, according to a Tuesday press release shared with CoinDesk.
Securitize aims to go public this year via a SPAC deal with Cantor Equitize Partners (CEPT). CEPT shares are up 6% pre-market. ICE shares are flat.
The two firms 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 transactions – work when securities are issued and settled on blockchain rails.
Securitize, backed by major asset managers such as BlackRock and Ark Invest and registered with the SEC as a transfer agent, is expected to be among the first firms eligible to mint tokenized versions of stocks and ETFs on the platform, subject to regulatory approvals.
The firm’s broker-dealer arm could also participate in trading, giving it a foothold across both issuance and market activity.
The move comes as traditional stock exchanges such as the NYSE and Nasdaq are doubling down on tokenization efforts to bring blockchain rails into stock trading. This technology would enable round-the-clock trading and near-instant settlements, similar to crypto markets.
Recently, NYSE parent Intercontinental Exchange invested in crypto exchange OKX to develop tokenized stocks and derivative products. Rival exchange Nasdaq gained regulatory approval for its tokenized equity trading framework and has used Kraken to distribute equity tokens globally.
“As we explore how tokenization can improve capital markets, it is critical that new infrastructure be developed in a way that maintains the trust, transparency and protection investors expect,” said NYSE Group President Lynn Martin.
Read more: Here’s why Nasdaq and NYSE owner are putting $126 trillion stock market on blockchain
