The tokenization of Wall Street securities welcomes another major breakthrough! The New York Stock Exchange (NYSE) has officially selected the blockchain platform Avalanche as the core clearing and settlement ledger technology for its new generation tokenized securities trading platform.

According to Ava Labs 9announcement, this system will support 24/7 trading, on-chain clearing and instant settlement in the future, and can handle tokenized stocks issued on different blockchains. After the news was announced, Avalanche’s native token AVAX once rose by about 10%, with the latest quote on November 10 being about $8.66. However, the new platform is still subject to approval by U.S. regulators, and the NYSE has yet to announce an official launch date.

NYSE officially selects Avalanche, U.S. stock tokenized settlement structure exposed

According to a report released by Avalanche developer Ava Labs on the 9thofficial statement, Avalanche will provide core accounting technology for NYSE’s planned digital alternative trading system (ATS) to support its clearing agency in recording transactions and completing on-chain settlement.

Dennis Lee, head of digital issuance at NYSE, said that the new platform will support stocks issued on multiple blockchains, but the ledger responsible for transaction recording and settlement must have the capabilities of high-speed processing, reliable operation, predictable costs and participant rights control, and Avalanche meets the relevant requirements.

This also means that the NYSE is not requiring all tokenized shares to be issued on Avalanche, but will use its technology for the core settlement infrastructure of the new platform.

US stocks challenge 24-hour trading, stablecoin deposits and instant settlement become selling points

As early as January this year, NYSE announced the development of a tokenized securities trading platform, planning to integrate the existing Pillar matching system and blockchain post-trade processing technology. According to the original plan, the platform will support tokenization of U.S. listed stocks and ETFs, fractional share trading, placing orders in U.S. dollars, and using stablecoins to provide trading funds.

Unlike traditional U.S. stock transactions, which usually adopt T+1 settlement, the new NYSE platform hopes to achieve near-instant transaction delivery through the blockchain and extend trading and clearing services to weekends and non-U.S. stock normal trading hours.

However, this service still needs regulatory approval and does not mean that all existing stocks on the NYSE can be traded year-round.

AVAX once soared 10%, with the latest price quoted at about $8.66

After the announcement of the cooperation, AVAX became one of the mainstream tokens with outstanding performance in the encryption market.

According to CoinGlass data on the morning of November 10,AVAX It was quoted at approximately US$8.66, up 8.73% in the past 24 hours, reaching a maximum of approximately US$9.01 during the period, with a circulating market value of approximately US$3.86 billion. During the same period, the open interest of AVAX futures was approximately US$378 million, an increase of approximately 16.8% in 24 hours, reflecting the increase in derivatives market trading positions after the news was announced.

However, it needs to be clarified that the NYSE’s use of Avalanche technology does not mean that stock transactions will be paid directly in AVAX, nor does it mean that each settlement will inevitably generate an equal amount of AVAX buy orders. The official has not yet announced the private network’s fee mechanism, validator configuration and the actual use of AVAX tokens.

Selected after nearly a year of testing, NYSE is not the only Wall Street giant planning to tokenize

Avalanche's partnership with the NYSE wasn't announced out of the blue. Charley Cooper, president of Ava Labs, revealed in September that the NYSE has spent about a year testing Avalanche and evaluating its technical performance, cost and integration with existing financial infrastructure.

At the same time,The U.S. Securities Depository and Clearing Corporation (DTCC) has launched securities tokenization services in October, the first batch covers 34 eligible securities, representing approximately US$30 trillion in related securities market value, and 20 financial institutions have signed to participate.

NYSE parent company Intercontinental Exchange (ICE) is also teaming up with OKX to promote anotherTokenized US stock trading plan OKXICE, but this plan uses the X Layer blockchain, which is not the same service as the digital trading platform under the NYSE that uses the Avalanche settlement ledger.

This shows that Wall Street is simultaneously exploring a variety of stock on-chain models, including trading platforms, securities custody, asset issuance and on-chain settlement, and not all companies are betting on the same blockchain.

For Avalanche, being selected by the NYSE as its core settlement ledger technology is an important development in financial infrastructure. But for the entire U.S. stock tokenization market, technical cooperation is only the first step. In the future, regulatory approvals, actual tradable stocks, liquidity providers, transaction clearing rules, and the connection of rights between traditional securities and tokenized securities must still be confirmed.

However, this cooperation is still a future platform that needs to be approved, and AVAX's short-term gains cannot be directly equated to long-term economic benefits. What is really worth observing is when the new platform will be approved to go online, and whether it can attract enough demand for actual stock trading and settlement in the future.

〈NYSE selects Avalanche! U.S. stocks are tokenized using AVAX ecological settlement and challenge 24-hour trading, and the currency price once soared 10%〉This article was first published inBlock Guest》.