NYSE charts round-the-clock trading via tokenised rails

New York Stock Exchange plans to introduce continuous, 24-hour trading for United States equities through a newly designed on-chain, tokenised exchange, marking a structural shift in how shares could be issued, traded and settled across time zones. The proposal, disclosed by people familiar with the exchange’s roadmap and echoed in public briefings around digital market infrastructure, would extend trading beyond traditional hours while keeping securities within a regulated framework.

Under the plan, the exchange operator would create tokenised representations of listed shares that trade on a blockchain-based venue linked to the primary market. These tokens would mirror the economic and voting rights of underlying equities and be redeemable against the conventional shares. Trading would run continuously, including weekends and holidays, with price formation drawing on liquidity from both the legacy exchange and the new venue.

Executives involved in the project argue the move responds to investor demand for constant access, particularly from global asset managers and retail traders accustomed to round-the-clock crypto markets. Futures, foreign exchange and digital assets already trade nearly continuously; equities remain constrained by market hours set decades ago. Proponents say tokenisation allows shares to adopt the operational flexibility of digital assets without abandoning established safeguards.

Bold paraphrase: Round-the-clock share trading via tokenised exchange

Market participants note that settlement is central to the initiative. Traditional equities in the United States settle on a T+1 basis, a cycle shortened last year to reduce counterparty risk. A blockchain-native exchange could move toward near-instant settlement, potentially lowering margin requirements and operational costs. Clearing and custody functions would still be overseen by regulated intermediaries, with smart contracts automating parts of the process.

Regulatory approval remains pivotal. Any launch would require clearance from the Securities and Exchange Commission, coordination with clearing agencies, and alignment with market integrity rules such as best execution and market surveillance. Officials familiar with regulatory discussions say the exchange has framed the platform as an extension of existing markets rather than a parallel, lightly regulated venue. The emphasis is on ensuring investor protections, disclosure standards and anti-manipulation controls match those of the main exchange.

The announcement has intensified debate about market structure. Supporters believe continuous trading could deepen liquidity by attracting overseas participants during their local business hours and by allowing risk to be managed in real time rather than waiting for openings. They also argue that tokenisation could broaden access, enabling fractional ownership and more efficient collateral use.

Sceptics warn of fragmentation and volatility. Extending hours may thin liquidity during off-peak periods, potentially amplifying price swings. There are also concerns about information asymmetry, as corporate disclosures and economic data releases remain clustered around traditional hours. Exchanges would need clear protocols for halts and corporate actions in a market that never closes.

Technology firms and banks are positioning themselves around the shift. Major custodians have expanded digital asset units to support tokenised securities, while several brokerages are upgrading systems to handle continuous trading and blockchain settlement. Asset managers, particularly those with global mandates, are assessing whether 24/7 access improves portfolio management or simply increases operational complexity.

The proposal aligns with a broader trend of tokenising real-world assets, from bonds to funds, as financial institutions test distributed ledger technology within regulated environments. Pilot projects over the past two years have shown that on-chain issuance can reduce reconciliation errors and speed up corporate actions. Scaling such systems to the world’s largest equity market, however, presents challenges in resilience, cybersecurity and interoperability with legacy infrastructure.

For the exchange operator, the initiative is also competitive. Alternative trading venues and fintech platforms have sought to capture after-hours activity, while overseas exchanges have explored extended sessions. By anchoring tokenised trading to the primary listing venue, the exchange aims to retain price discovery and issuer relationships as markets evolve.