AVAX Jumps as Much as 10% After Avalanche Chosen for NYSE Platform Settlement Ledger
Key Facts
Ava Labs announced on November 9 that Avalanche will provide the core ledger technology for the clearing firm of a digital alternative trading platform linked to NYSE. On the same day, AVAX jumped as much as 10%, making it the best performer among the top 100 cryptocurrencies by market capitalization, according to Cointelegraph. CoinDesk said the token was up 8% over 24 hours at the time it updated its report, published on November 9. Coverage linked the move to the timing of the selection announcement. The platform has not yet begun operating, as its launch depends on regulatory approvals.
The platform aims to allow subscribers to trade, clear and settle tokenized securities around the clock, according to an Ava Labs statement. Avalanche’s announced role is limited to the ledger technology that records clearing and settlement transactions; the platform itself is a separate project linked to NYSE. Coverage says shares listed on the platform may be issued on multiple blockchains, while trade settlement will rely on a ledger supported by Avalanche technology. Dennis Lee, NYSE’s head of digital issuance, said the planned platform “will support listed equities across a range of blockchains.” The settlement ledger, Lee said, requires speed, reliability, participant controls and predictable costs.
NYSE will not use the public Avalanche blockchain to settle transactions on the platform, according to CoinDesk. Instead, the exchange will operate a dedicated blockchain built on Avalanche technology and tailored to the platform’s regulatory needs. This design means the selection concerns the technology underpinning a private blockchain, rather than direct use of the public network. John Nahas of Ava Labs said work on the project had continued for “more than a year.” The company added that the selection followed about a year of testing and collaboration with NYSE to assess the technology’s suitability for its systems.
The project is part of a broader tokenized equities infrastructure NYSE is preparing. On November 2, the exchange said it had added Broadridge, Computershare, Equiniti and Superstate to Securitize and tZERO as partners in an issuer-sponsored network for tokenized securities. Broadridge, Computershare and Equiniti together serve nearly 5,000 listed companies, including about 99% of S&P 500 companies, according to NYSE. The platform’s infrastructure combines the exchange’s Pillar matching engine with blockchain systems for post-trade operations, with the ability to support multiple settlement and custody networks. NYSE said holders of tokenized shares will receive the same dividend and governance rights as holders of traditional shares. The platform’s operation remains subject to regulatory approval.
Other initiatives to tokenize equities and financial assets are moving forward in parallel. In September, Nasdaq and Payward announced plans to build infrastructure enabling tokenized assets to be traded and settled outside traditional market hours while maintaining compliance and market safeguards. Nasdaq expects to launch Nasdaq Equity Tokens with Payward in the second quarter of 2027. On October 28, DTCC launched a service that allows tokenized representations of real-world assets held in its custody to be created and converted between traditional and tokenized formats. DTCC said 20 participants had signed agreements to access the service, and that it currently integrates with Canton Network and its own Besu network, with other networks to be added in 2027. These steps place the NYSE project in a race to build trading and settlement infrastructure for tokenized securities.
The target launch date for the NYSE-linked platform remains the fourth quarter, according to The Block, subject to regulatory approvals. On September 17, the U.S. Securities and Exchange Commission granted tokenized securities trading platforms a temporary, conditional exemption allowing tokenized NMS stocks to trade through licensed alternative trading systems and automated market makers. The exemption is subject to limits on the number of tokens and trading volume. The platform must also verify that holders of tokenized shares have rights and privileges equal to those of holders of the equivalent traditional class. These conditions and regulatory approval remain decisive factors before the NYSE project moves from announcement to operation.