ICE is ditching traditional banks to settle NYSE trades with tokenized cash, and the hidden risks are actually massive
ICE plans a new platform for tokenized equities using stablecoin funding, aiming for 24/7 trading and instant settlement, despite inherent risks.Summary
Intercontinental Exchange (ICE), owner of the NYSE, is developing a separate trading platform for tokenized US-listed equities and ETFs, designed to enable 24/7 trading and immediate settlement using tokenized capital, pending regulatory approval. This move positions settlement speed as a key competitive factor, utilizing a hybrid system combining NYSE's Pillar matching engine with blockchain post-trade systems. The primary hurdle for 24/7 markets—funding limitations outside banking hours—is being addressed by ICE working with institutions like BNY and Citi to support tokenized deposits across clearinghouses, allowing for off-hours margin and funding management. While this adoption validates blockchain technology, some critics, like Jeff Dorman of Arca, argue that the value accrual benefits native crypto tokens, suggesting the industry is in an existential crisis where technology adoption doesn't translate to token value. The success hinges on regulatory approvals for stablecoin funding, scaling tokenized deposits, and the DTCC's ability to implement its planned tokenization services by 2026.
(Source：CryptoSlate)