"The blockchain is coming to Wall Street. The New York Stock Exchange (NYSE) said on Monday that it was developing a platform to trade tokenized securities, digital representations of assets like stocks and bonds. But exactly when the 233-year-old financial institution will turn it on is still up in the air. Supporters of the technology argue that the change could modernize the NYSE, giving traders some of the same advantages that are enjoyed by investors in the cryptocurrency world."
"But Wall Street stalwarts are wary of altering a system that has been the bedrock of securities trading for more than two centuries. Tokenized securities are digital versions of stocks and bonds that are traded on the blockchain, rather than a brokerage account. People who opt to use this platform would be able to use stablecoins-a crypto that pegs its value to another asset like the U.S. dollar-to fund their trades."
NYSE is developing a blockchain-based platform to trade tokenized securities, which are digital representations of stocks and bonds. The launch timeline for the platform remains uncertain. Tokenized securities would be traded on a blockchain and could be funded using stablecoins that peg value to assets like the U.S. dollar. Proponents say tokenization could modernize trading and offer advantages similar to those in cryptocurrency markets. Long-standing Wall Street participants express caution about altering established securities trading infrastructure that has operated for more than two centuries. The move could change trading mechanics and carry both benefits and risks for investor portfolios.
Read at Fast Company
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