NYSE investigates 24/7 trading on blockchain via Avalanche

The New York Stock Exchange (NYSE) is working on an alternative trading system that would allow investors to trade shares around the clock via the blockchain. Michael Blaugrund of Intercontinental Exchange, the parent company of the NYSE, says that Avalanche has many of the required characteristics and that both parties are working closely together. The platform is still very much under development.

In brief:

• The NYSE wants to enable 24/7 onchain trading through an alternative trading system under development
• Blaugrund cites Avalanche as a blockchain that meets many of the requirements
• The initiative fits a broader trend in which traditional exchanges are exploring blockchain for continuous trading

NYSE looks to Avalanche for onchain trading system

Blaugrund, vice chairman of Intercontinental Exchange and the NYSE, says that his organisation has assessed several blockchain platforms. According to him, Avalanche meets many of the criteria that the NYSE sets for a suitable platform for continuous trading.

“As we’ve evaluated different platforms, Avalanche checks a lot of those boxes for us, so we’re very engaged with the team,” Blaugrund said.

The system in question is a so-called alternative trading system, abbreviated in English as ATS. Such systems operate outside the traditional exchanges, but they do fall under the supervision of the financial authorities. The NYSE wants to use this system to enable trading outside regular opening hours, seven days a week and 24 hours a day.

Continuous trading as the next step for traditional exchanges

The NYSE’s move fits into a broader development in which established financial institutions are using blockchain to circumvent limitations of the traditional trading system. Regular stock exchanges are generally open only on weekdays during fixed hours, which makes trading outside those hours impossible.

Other parties are moving in this direction too. For example, Kraken is bringing onchain perpetuals to the US via its parent company Payward, which likewise makes use of blockchain infrastructure for continuous trading. Whether and when the NYSE system will go live has not yet been announced.