Intercontinental Exchange stated on Monday that it has created a platform for trading and on-chain settlement of tokenized securities. The move seeks to address global demand for U.S. equities.
The New York Stock Exchange's new digital platform will allow 24/7 operations, instant settlement, orders in dollar amounts, and stablecoin-based funding. Regulatory approvals will be required for the platform.
Investor interest in continuous trading of U.S. stocks has grown significantly in recent years. This has led regulators to introduce new rules and approve proposals from major exchanges to permit trading outside normal market hours.
"Tokenization is not a fad. It is a technology that solves problems. And there's a long list of possibilities it opens up," said Campbell Harvey, a finance professor at Duke University.
"Tokenized stocks are probably the lowest hanging fruit," Harvey added.
Nasdaq, which lists many large tech companies, is seeking approval for stocks to trade 23 hours a day, five days a week, as reported by Reuters in December last year.
Major brokerages like Robinhood and Charles Schwab, along with exchange operator Cboe Global, have also expanded stock trading hours in recent years.
The exchange is collaborating with banks such as BNY and Citigroup to support tokenized deposits.