The NYSE chooses Avalanche for its tokenized shares: what impact for AVAX?
The New York Stock Exchange will use Avalanche to settle transactions on its future tokenized stock platform. The effect on demand for AVAX will depend on the role the token plays in paying fees.
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https://cryptoast.fr/bourse-new-york-nyse-avalanche-actions-tokenisees-avax/
The New York Stock Exchange has chosen Avalanche to record and settle transactions for its future tokenized stock platform, the network announced on Monday.
Unveiled in January by Intercontinental Exchange (ICE), the parent company of the NYSE, the platform will take the form of an alternative trading system (ATS). If American regulators give the green light, participants will be able to trade stocks and ETFs represented by tokens on a blockchain, 24 hours a day, 7 days a week. They will also be able to fund their accounts with stablecoins.
BREAKING: Upcoming NYSE-affiliated tokenized securities platform's core clearing and settlement layer will be built on top of Avalanche technology.
Avalanche will support the platform's clearing firm, supporting the development of infrastructure for 24/7 trading, clearing, and… pic.twitter.com/LSzeFbGegN
The NYSE will use its own system to match buy and sell orders. Once the transaction is completed, the Avalanche Registry will be used to transfer securities to the buyer and payment to the seller.
To buy AVAX and follow the evolution of the token after this announcement, you must go through an exchange platform.
The choice comes after about a year of testing. According to Dennis Lee, head of digital issuance at the NYSE, the ledger needed to process transactions quickly, remain reliable during peak activity, and offer predictable costs. The Stock Exchange also wanted to be able to control which players would be authorized to participate in the network.
The NYSE is aiming for so-called “atomic” settlement. In practice, securities and payment change hands during the same transaction. If one of the two transfers fails, the other does not take place. This approach must make it possible to settle trades immediately, including outside normal market hours.
After the announcement, AVAX was up around 8% over 24 hours. In the longer term, the effect of the project on the token will depend on the configuration of the ledger. A dedicated blockchain built on Avalanche can use another token to pay its transaction fees. In this case, an increase in settled volumes would not automatically translate into more fees paid in AVAX.
Machine-translated from French
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