On January 19, 2026, the New York Stock Exchange (NYSE) announced it is developing a blockchain-based tokenized (tokenization) securities trading platform, with plans to launch once regulatory approval is secured. This follows Nasdaq's September 2025 proposal for tokenized securities rule changes, which is currently under SEC review.
When the two giants of Wall Street both move toward blockchain and the worlds of crypto and traditional finance collide, it’s no longer a question of "if," but "how." To truly get what this shift means, we’ll first clear up what tokenizing securities actually is, compare the plans and strategies of both exchanges, and look at how this trend impacts the crypto market and what variables to watch.
Securities are legal documents that record and represent specific rights. Securities tokenization is the process of using blockchain technology to turn traditional financial assets (like stocks, bonds, funds, or real estate) into digital tokens. These tokens represent ownership, rights to income, or other related rights of the underlying asset.
A security proves that the holder has the right to get specific benefits based on what is written on the document. The way we record this has changed over time. It started with the era of paper stock certificates, where investors held physical paper. Then came the electronic era, where stocks became a simple entry in the Depository Trust Company (DTC) database. What we are talking about now—securities tokenization—is moving that record onto a blockchain to create a digital token.
The DTC is the core clearing and settlement hub of the US stock market; almost every stock traded in the US is eventually registered and settled through them. The DTC database tracks who owns what and how much, serving as the "master ledger" of the US securities market. Understanding the DTC's role is key to understanding the differences between the two exchanges' plans later on.
Now that we know the essence of securities tokenization, the next question is: how are the two big exchanges answering the same trend differently?
The NYSE plans to build a completely new, independent platform for trading tokenized securities. This platform will run alongside existing stock trading systems but will use blockchain technology for post-trade clearing and settlement.
The core features of this platform can be summarized in four points:
First, 24/7 trading. Currently, the US stock market is only open during specific hours on workdays (9:30 AM to 4:00 PM ET), but the new platform plans to support non-stop trading 24 hours a day, 7 days a week.
Second, instant settlement. The current stock market uses a T+1 settlement system, meaning a trade made today isn't finalized with cash and securities until the next business day. The new platform aims for instant settlement right after a trade, making capital move faster and lowering counterparty risk.
Third, stablecoin financing. The platform will support settlement using stablecoins (digital currencies pegged to the US dollar with stable value). This means investors can move money and settle trades even when traditional banks are closed.
Fourth, fractional shares. The platform will let investors buy stocks based on a dollar amount rather than having to buy a full share. For example, an investor could buy $50 worth of Apple stock instead of paying for a whole share.
The NYSE has made it clear that holders of tokenized stocks will have the exact same rights as traditional shareholders, including dividends and voting rights. In other words, these aren't synthetic assets or derivatives; they are real securities rights moved onto the chain.
Nasdaq is taking a very different approach. Instead of building a new venue, Nasdaq plans to add a tokenized settlement option to its existing trading system.
Matt Savarese, Nasdaq’s Head of Digital Assets, explained in an interview: "Investors can choose to hold stocks in a tokenized form on the blockchain, or they can stick with the traditional account system. The nature of the stock doesn't change—the ticker and the CUSIP stay exactly the same. The tokenized and traditional forms are completely interchangeable and equivalent."
Specifically, when investors buy or sell stocks on Nasdaq, the trading process stays exactly as it is today—same order book, same price, same rules. The only difference is at the settlement stage: investors can choose to settle the trade the old-fashioned way or in a tokenized form. If they pick the latter, the DTC will register the corresponding shares as tokens on the blockchain.
Nasdaq’s tokenization feature will go live once the DTC infrastructure and necessary regulatory approvals are in place, which is expected as early as the end of Q3 2026.
Here’s a simple metaphor: Nasdaq’s approach is like adding a "digital ledger" option at a traditional bank teller window—customers go to the same place and do things the same way, but just choose to have their receipt recorded on the blockchain. The NYSE’s approach is like opening a brand-new 24-hour digital bank right next door to the traditional one, using a completely new system to offer services the old branch can't.
More specifically, the differences between Nasdaq and NYSE show up in the trading layer and the fund settlement layer:
Trading Layer: NYSE builds a separate platform; Nasdaq integrates into the current one.
The NYSE uses a "parallel market" model. Tokenized securities will trade in a new, independent venue, meaning the same stock might have prices on both the traditional board and the tokenized platform at the same time.
Nasdaq uses a "unified market" model. Tokenized stocks and traditional stocks share the same order book and the same price discovery mechanism. This means liquidity isn't split up, and the investor’s trading experience feels just like it does today.
Fund Settlement Layer: NYSE offers instant delivery; Nasdaq sticks to T+1.
This is the most fundamental difference between the two.
Nasdaq relies entirely on the DTC’s existing tokenization services and uses traditional funds. Once a trade is done, Nasdaq sends the settlement instructions to the DTC—the blockchain just adds a layer of digital recording on top of the existing system, rather than replacing it. This is great for regulatory clarity and risk control, but it means they can't break the current settlement cycle limits. Nasdaq has already said that, initially, tokenized securities will still follow T+1 settlement.
The NYSE, however, plans to achieve instant settlement (T+0) and support stablecoins, fundamentally breaking away from business hour restrictions. Traditional markets need T+1 or longer because moving funds, transferring titles, and clearing take time. The impact on capital efficiency is huge; according to SIFMA data, when the US market moved from T+2 to T+1, the size of the NSCC clearing fund dropped by about 29% (roughly $3.7 billion). By comparison, the efficiency gains from instant settlement could be massive.
NYSE and Nasdaq picked very different ways to tokenize securities, reflecting their different takes on risk, opportunity, and competition. Looking into these strategies helps us understand what traditional financial firms care about when using blockchain.
Nasdaq’s choice to integrate into the current system means a faster launch, less market shock, and lower initial costs. But the trade-off is that innovation is limited by the old architecture, making things like 24/7 trading or instant settlement impossible. Essentially, Nasdaq is betting on "tokenization as an add-on"—it believes most institutional investors won't ditch their familiar workflows soon, so the value lies in offering an option rather than flipping the script.
The NYSE’s choice to build an independent platform is mostly about risk isolation. The new platform runs separately, so even if there’s a technical glitch or a regulatory fight, it won't mess with the main NYSE board. Plus, a standalone platform can be designed from the ground up to support 24/7 trading and instant settlement, which are hard to pull off on old systems. On a deeper level, the NYSE is positioning itself for the next generation of market infrastructure—once instant settlement becomes the norm, being first gives them a massive head start in tech and users.
Both exchanges put compliance front and center, but they are playing it differently.
Nasdaq’s plan tries to stay within current rules. Matt Savarese, Nasdaq’s digital asset lead, emphasized: "We aren't trying to disrupt the existing financial system; we are moving tokenization forward step-by-step within the SEC’s framework." Nasdaq is reusing as much of the old compliance setup as possible to keep regulatory surprises to a minimum.
The NYSE is taking a bolder path. Building a new venue, using stablecoins, and 24/7 trading each bring up new regulatory questions. But the NYSE bets that the current regulatory window is a rare chance—instead of waiting for the rules to be set in stone and then following, they’d rather help write the rules. This proactive stance, given the friendlier regulatory environment, could give them a first-mover advantage.
Nasdaq is focusing more on providing extra services to its current clients. Its plan is basically an upgrade to current business, letting investors choose a tokenized way to hold assets. This is great because it’s easy for clients to switch, but it means Nasdaq is acting more as a "follower" than a "trendsetter" in this shift.
The NYSE’s strategy shows a stronger desire to build an entire ecosystem. Its platform plans to offer non-discriminatory access to all qualified broker-dealers, meaning the NYSE wants to be the hub connecting traditional finance with the digital asset world. If they pull it off, the NYSE evolves from a simple trading venue into an infrastructure provider for both traditional and on-chain worlds—a much bigger business model.
Neither strategy is "better" than the other; their success depends on how fast the outside world—especially the regulators—moves. This leads to the next big question: what’s happening with US regulation, and how does it affect these plans?
The aggressive move by both exchanges into tokenized securities is closely tied to a major shift in the US regulatory landscape. Improving regulatory expectations have finally opened the door for big finance to embrace blockchain.
For years, the SEC’s vibe regarding crypto wasn't about "rules" but about "enforcement"—lots of lawsuits, blurry lines, and zero predictability. Innovation and compliance were always at odds. But starting in 2025, the SEC’s tone changed. They began talking publicly about "how to bring capital markets on-chain" and started using tools like exemptions, pilots, and tiered regulation to find a compliant path for tokenized securities and on-chain clearing.
This change comes from three realizations: everyone agrees blockchain is faster for settlement; institutions are desperate for instant, 24/7 trading; and the crypto industry now has too much economic and political weight to ignore.
In July 2025, the GENIUS Act was signed into law, marking the first federal legislation for stablecoins in the US. The act set up a full framework for payment stablecoins, requiring issuers to back them 1:1 with USD or low-risk assets, disclose their reserves monthly, and have the CEO and CFO certify those reports.
Stablecoins are the "plumbing" needed for instant settlement in a tokenized securities ecosystem. The NYSE specifically made stablecoin financing a core part of its platform. The GENIUS Act provides the legal safety net that big financial firms needed, removing a massive roadblock. This explains why the NYSE felt brave enough to include stablecoin settlement—the legal fog has mostly cleared.
On January 23, 2025, President Trump signed an executive order titled Strengthening U.S. Leadership in Digital Financial Technology, which explicitly supported the responsible growth of digital assets and blockchain across the economy and created a presidential working group. On the ground, the SEC formed a Crypto Task Force in January 2025 to focus on every step of the process—issuance, trading, and custody.
From laws to executive orders to daily supervision, the US government has moved from being skeptical to being a guide. This collective push provides the necessary institutional safety for the NYSE and Nasdaq to make their moves.
This clear regulatory path doesn't just help these two exchanges; it's going to reshape the whole crypto market. How will this trend change money flows, tech, and the lines of what’s legal?
With rules becoming clear, market players are moving from defense to offense, and the line between DeFi and CeFi is getting blurry.
For big institutional investors, the NYSE and Nasdaq plans offer a compliant, trustworthy way in. A tokenized trading platform with the NYSE’s gold-standard reputation is a huge magnet for big money that was previously scared off by legal risks. This means a flood of cash could pour into tokenized assets. Existing crypto exchanges might feel the heat in the short term, but long term, the NYSE is basically "vouching" for the whole tokenization sector, which will speed up market maturity and rule-making.
Real-time settlement will change how margins are calculated and slash counterparty risk. Arbitrage based on geography or time will shrink, and 24/7 trading will change how global markets react to each other. We might also see new market depths as on-chain liquidity aggregates, potentially leading to hybrid models of professional market makers, AMMs, and order books.
Big finance moving in will force the whole industry to level up its compliance. Since the NYSE and Nasdaq are strictly regulated, their tokenized plans will naturally set a high bar for the rest of the industry. Meanwhile, regulators are busy writing specific rules for tokenized securities, meaning the "gray areas" are finally disappearing.
On the tech side, trying to plug old-school trading systems into blockchain is a massive headache. You have to solve for transaction speed, cross-chain compatibility, and smart contract security. There’s also the risk of unproven cross-chain tech and new ways to manipulate the market on-chain.
Even though things look better, we still have to worry about "fragmented regulation." The SEC and CFTC are still fighting over who controls what, and rules that work across different countries aren't there yet.
When it comes to market habits, you don't change decades of tradition overnight. Legal and risk teams at big firms will need time to trust this new way of doing things. Also, a market that never sleeps means higher volatility, which puts more pressure on investors to manage their risks.
Short term (1-2 years): Watch the regulatory approvals. Nasdaq’s plan might launch by late Q3 2026, while the NYSE hasn't given a date yet. The DTC tokenization pilot officially kicks off in the second half of 2026.
Medium term (3-5 years): Watch how the market structure evolves. We could see a massive boom in the size of tokenized assets, and the role of market makers will change forever. The "compliance tech race" will focus on things like programmable compliance protocols and privacy tech.
Long term (5+ years): Watch for a total shift in regulation. The focus might move from "regulating the institution" to "regulating the protocol," where the code itself has to be compliant. We might even see new ways to vote or manage governance in real-time through tokens.
In 1792, the NYSE started under a buttonwood tree on Wall Street. Over two hundred years later, it’s moving from the physical world to the blockchain.
As Nasdaq said in its proposal, the US stock market has already moved from paper to digital; tokenization is just the latest chapter in that story. In this historic shift, the biggest winners will be the ones who can think across both traditional and crypto worlds, finding the sweet spot between rules, innovation, and the market.
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