Avalanche will supply the ledger for a planned NYSE-affiliated venue for tokenized securities, Ava Labs announced. The venue still needs regulatory approval, and investors would reach it through broker-dealers rather than direct wallets.
The Avalanche blockchain will record and settle trades on a planned tokenization venue affiliated with the New York Stock Exchange, Ava Labs announced Nov. 9. The platform is an alternative trading system (ATS) meant to offer round-the-clock trading, clearing and settlement, subject to regulatory approvals.
Avalanche supplies the clearing ledger
Avalanche will provide the core ledger technology to the platform's clearing firm. Dennis Lee, NYSE's head of digital issuance, said in the Ava Labs release that the ledger needed speed, reliability, predictable costs and developers, plus the ability to "let us control who can take part."
Lee also said the platform would support equities on a range of blockchains. The clearing-ledger choice therefore does not require every security on the venue to use Avalanche as its issuance chain.
Brokers stay the access point
NYSE parent Intercontinental Exchange outlined the platform on Jan. 19, with distribution through non-discriminatory access for qualified broker-dealers. The design paired NYSE's Pillar matching engine with blockchain-based post-trade systems, along with planned dollar-sized orders, stablecoin funding and immediate settlement.
That January plan did not name the blockchains it would use. November's announcement supplies the clearing-ledger choice, while broker access was already part of the original design.
NYSE's Nov. 2 update reaffirmed distribution through participating broker-dealers and said regulatory approval remained pending. Individual investor eligibility and account rules are still unspecified.
Source: CryptoSlate
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