The New York Stock Exchange (ICE) is partnering with tokenization expert Securitize to help design the infrastructure behind tokenized securities trading, according to a Tuesday press release shared with CoinDesk.
Securitize is aiming to go public this year through a SPAC deal with Cantor Equitize Partners (CEPT). CEPT stock is up 6% premarket. ICE stock is flat.
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 (organizations that track ownership and handle corporate activities) work as securities are issued and settled on blockchain rails.
Securitizer, which is backed by major asset managers such as BlackRock and Ark Invest and is registered as a transfer agent with the Securities and Exchange Commission, is expected to be one of the first companies eligible to mint tokenized stocks and ETFs on the platform, subject to regulatory approval.
The company’s broker-dealer division may also participate in the deal, giving it a foothold in both issuance and market activity.
The move comes as traditional exchange giants like the NYSE and Nasdaq are doubling down on tokenization efforts to bring blockchain rails to stock trading. This technology allows for 24-hour trading and near-instant settlement, similar to the cryptocurrency market.
Recently, Intercontinental Exchange, the parent company of the New York Stock Exchange, invested in cryptocurrency exchange OKX to develop tokenized equity and derivatives products. Rival exchange Nasdaq received regulatory approval for its tokenized stock trading framework and leveraged Kraken to distribute stock tokens globally.
“As we explore how tokenization can enhance capital markets, it is critical that we develop new infrastructure in a way that maintains the trust, transparency and protection investors expect,” said Lynn Martin, president of NYSE Group.
Read more: Here’s why the owners of Nasdaq and NYSE are putting their $126 trillion stock market on the blockchain
