Authentic | Odaily (@OdailyChina)
Creator | Wenser (@wenser 2010)
Earlier than “Flash Crash Monday” even concluded, the crypto market was hit with one other bombshell simply moments in the past—in accordance to a number of media sources, the New York Stock Alternate (NYSE) plans to launch a tokenized securities buying and selling and on-chain settlement platform supporting 7*24 hour buying and selling. Following its $2 billion funding in Polymarket final 12 months, the ICE Group is as soon as once more leveraging its inventory change to be a part of the century-defining wave of cryptocurrency transformation. Notably, as early as September final 12 months, its “rival” Nasdaq had already submitted an utility to the SEC for tokenized inventory buying and selling. This transfer by the NYSE can be interpreted by the skin world as a response to competitors amongst inventory exchanges.
Odaily will briefly summarize related market views on this occasion on this article and discover its potential implications.
The NYSE Cannot Sit Nonetheless Anymore: A Extra Aggressive “On-Chain Tokenized Stock Resolution” Than Nasdaq
Since Trump took workplace, the U.S. cryptocurrency regulatory atmosphere has undergone a major shift. Consequently, crypto IPOs, stablecoins, PayFi, and DeFi have swept away the coverage gloom of the Biden administration period and are creating vigorously. In accordance to statistics, stablecoin buying and selling quantity reached $33 trillion final 12 months, a pointy enhance of 72% year-on-year. Behind this lies the substantial income and income earned by stablecoin issuers Tether and Circle, and extra importantly, it represents huge liquidity that may be directed in the direction of the inventory and securities markets.
Moreover, in contrast to Nasdaq’s submission of a tokenized inventory buying and selling utility to the SEC in September final 12 months, almost half a 12 months later, the NYSE’s strikes associated to “tokenized inventory buying and selling” are usually not merely regulatory purposes however a complete “on-chain answer.” Advisable studying: “The Self-Revolution of U.S. Stock Exchanges: Nasdaq Applies for Tokenized Stock Trading, Targeting a Trillion-Dollar Market”.
Particularly, the NYSE’s “On-Chain Tokenized Stock Resolution” contains the next three elements:
- It’s a tokenized securities buying and selling and on-chain settlement platform, planning to help 7×24 hour buying and selling of U.S. shares and ETF funds, fractional share buying and selling, stablecoin-based fund settlement, and on the spot supply. It’s going to combine NYSE’s present matching engine with a blockchain settlement system.
- In accordance to NYSE’s plan, tokenized shares could have equal dividend and governance rights as conventional securities.
- NYSE’s dad or mum firm, ICE, is concurrently collaborating with banking giants like BNY Mellon and Citigroup to discover tokenized deposits and clearing infrastructure to help cross-timezone, round the clock fund and margin administration.
Compared, if Nasdaq’s tokenized inventory utility looks like a case of “new bottle, previous wine” made in response to coverage, then the NYSE’s plan resembles a “new retail buying and selling platform” that integrates all hyperlinks from “brewing-packaging-distribution-recycling.”
Most significantly, the NYSE’s “tokenized inventory” buying and selling platform helps 7*24 hour buying and selling. This was initially one of many benefits distinguishing varied cryptocurrencies from securities and shares. Now, this benefit turns into a joke within the face of the huge asset choices and capital liquidity possessed by the NYSE, one of many world’s largest inventory exchanges.
Influenced by this, there are some pessimistic views within the crypto market: “The RWA sector within the crypto market and its more and more tightening liquidity will face its most formidable ‘father.’ In contrast to the NYSE with annual buying and selling volumes exceeding a whole bunch of trillions of {dollars}, crypto RWA initiatives can nearly be mentioned to be non-existent.”
What Do Crypto Practitioners Suppose: Combined Impacts, The Previous is Previous, The Current is Now
In 1792, 24 securities brokers signed the Buttonwood Settlement beneath a buttonwood tree exterior 68 Wall Road in New York, marking the beginning of the predecessor to the NYSE. At the moment, restricted by fewer funding choices and restricted market exercise, inventory buying and selling hours had been extra versatile, with out strict steady buying and selling classes. Brokers primarily carried out trades by way of auctions or casual strategies.
On March 8, 1817, the group formally modified its identify to the New York Stock & Alternate Board by drafting a structure.
In Could 1887, the NYSE standardized inventory buying and selling hours to “Monday to Friday: 10:00 AM to 3:00 PM; Saturday: 10:00 AM to 12:00 PM.”
In 1952, Saturday buying and selling was formally abolished.
In 1985, inventory market opening time was moved ahead to 9:30 AM, and shutting prolonged to 4:00 PM, forming the present 9:30–16:00 session, which has lasted for about 41 years.
If the NYSE’s utility for 7*24 hour tokenized inventory buying and selling is accepted, it could imply that this decades-long, even centuries-long “limited-time buying and selling mannequin” is about to turn out to be historical past. From this angle, the crypto market has gained excessive recognition from mainstream finance by way of this.
Proponents’ View: The Practice of the Period is Roaring In
BTC OG and BankToTheFuture founder Simon Dixon posted, “Nothing can cease this (period’s) practice. Tokens are IOUs for precise property held by custodians, supplementing claims on the DTCC. All-day buying and selling is achievable with out tokens. That is the surveillance state improve. You’ll personal nothing and you can be comfortable.” The accompanying picture confirmed BlackRock CEO Larry Fink and Coinbase CEO Brian Armstrong embracing.
Indian crypto KOL Open4profit posted, “(This may) allow the market to react instantly to international information; AI and algorithms will play a larger position in pricing and threat administration; it is a main change for the inventory market, hold an in depth eye on liquidity modifications.”
Redstone DeFi co-founder Marcin noticed a “startup alternative.” He said: “This can be a good begin and aligns completely with what we’re about to do.”
Wintermute OTC enterprise head Jake O additionally highly praised the matter: “Conventional infrastructure can lengthen buying and selling hours however can’t clear up T+1/2 friction or remove rent-seeking that provides price and delay. Paradoxically, crypto solved this years in the past: 24/7 buying and selling, on the spot settlement, international entry, no gatekeepers or (conventional financial institution) ‘information charges.’ Convergence is inevitable: fairness buying and selling on-chain, settlement atomized, the road between ‘crypto’ property and ‘conventional’ property will fully disappear. Welcome to the twenty first century…”
In fact, some see it as a chance, whereas others see it as a risk.
Opponents’ View: Exchanges Reap the Advantages, the Struggling Falls on the New Era
Not like the trade view that the NYSE’s transfer will stimulate crypto market improvement and promote cryptocurrency adoption, some trade insiders additionally see potential issues.
Funding agency L1D associate LouisT posted: “The complete international monetary system is transferring on-chain, however in some way they do not appear to be bidding for our ‘bear drug-like’ tokens.” In different phrases, conventional monetary markets are usually not shopping for into the so-called RWA property of cryptocurrencies.
MoonRock Capital founder expressed concern for the living conditions of the younger generation: “Not nice information for boomers, your life simply acquired tougher.” This possible refers to the truth that in contrast to earlier generations with important inhabitants development, the baby boomer technology faces a extra advanced funding atmosphere and a round the clock “liquidity gaming stage.”
BingX advisor Nebraskangooner additionally raised his doubts: “Why make the inventory market commerce 24 hours? Nobody desires this besides the exchanges. The one profit is not any after-hours buying and selling interference, so stop-loss and take-profit factors can really operate. Marvel what this may do to post-earnings worth motion?” This view focuses extra on info impression and change profitability.
Abstract: A Hole Stays Between Conventional Finance and Crypto-Native Teams, Alternatives for Customers and Entrepreneurs Nonetheless Exist
Lastly, the creator would love to briefly share private views primarily based on the above info:
First, primarily based on present info, the NYSE’s associated utility could also be accepted as early as the tip of 2026, with the principle regulatory physique nonetheless being the U.S. SEC. For crypto platforms, it is a important time hole.
Second, the first target market for the NYSE’s tokenized inventory buying and selling and on-chain settlement platform will probably nonetheless be typical funding establishments and compliant traders. For crypto-native teams and even international traders, what they want isn’t just purposeful success, but additionally attaining “KYC-free registration and buying and selling, international asset liquidity allocation, and higher-risk leverage” by way of tokenized shares and RWA platforms. This is perhaps the benefit of crypto RWA initiatives.
Lastly, the core function of NYSE, Nasdaq, and others selling inventory tokenization stays buying and selling quantity and charges. Comparable to how CEXs repeatedly record new token initiatives now, within the quick time period, they might nonetheless want to study from CEXs, DEXs, and even on-chain Perp DEXs. That is additionally the premise for present mature platforms to probably counterattack. At the moment, it is not not possible for U.S. inventory exchanges like NYSE and Nasdaq to fall from grace. The important thing nonetheless lies in the place the liquidity is, the place the eye is, and the place the consumer base is.
