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Quick Take
The Avalanche blockchain will supply the ledger that records and settles trades for a planned tokenized-securities venue affiliated with the New York Stock Exchange, Ava Labs announced Nov. 9.
The upcoming alternative trading system (ATS) is intended to offer round-the-clock trading, clearing, and settlement, subject to regulatory approvals. 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, developers, and the ability to “let us control who can take part.”
Lee also said the platform would support equities on a range of blockchains, so the announced clearing-ledger choice does not require every security traded on the venue to use Avalanche as its issuance chain.
In its implementation explanation, Avalanche said institutions can tailor performance, capacity, costs and network participation to their operational requirements. Avalanche presents that flexibility as a way to meet a market operator's requirements, including control over participation.
20 institutions join DTCC token service, but only 34 securities qualify
How investors would reach the venue
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.
ICE's earlier tokenized-securities plan described those access and settlement features without naming the blockchains it would use. November's announcement supplies the clearing-ledger choice for that earlier plan.
NYSE's Nov. 2 update reaffirmed distribution through participating broker-dealers and said regulatory approval remained pending.
Brokers above. Avalanche beneath.
The planned NYSE-affiliated ATS would distribute access through broker-dealers, with Avalanche supplying its clearing ledger. Regulatory approval is still required.
November names the clearing ledger; broker access was already in the January design.
The venue is upcoming and subject to regulatory approvals. Individual investor eligibility and account rules are unspecified. Ledger participation controls are not a complete customer eligibility policy.
Sources
Supporting facts
Method
Schematic of the published access model and announced division between matching and clearing. The dates mark announcements. Arrows show functional relationships, not a verified transaction sequence, money movement, or a live system.
Scope
NYSE's November update describes both third-party custodial tokens and issuer-sponsored tokenized securities as fungible with traditionally issued shares, carrying the same dividends and governance rights.
The intended use of blockchain for settlement would sit alongside those familiar ownership rights.
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