NYSE selects Avalanche for tokenized stock settlement

The New York Stock Exchange has selected Avalanche to settle its tokenized stocks, citing the platform’s security, speed, and predictable fees as primary factors. The NYSE retains the ability to spin up its own Avalanche subnet or Layer 1 for full control over the infrastructure. This selection is part of a wider industry shift, with major exchanges like OKEx and Robinhood launching tokenized stock products. OKEx, in partnership with Intercontinental Exchange, the parent company of the NYSE, is launching 67 tokenized stocks on its X Layer, using Uniswap V4 for trade routing.

Participation in tokenization varies by company type; major firms such as Apple, Tesla, and NVIDIA have refused tokenization, while crypto-native companies like Circle and Coinbase have engaged. The choice of Avalanche has sparked debate among analysts regarding where value will accrue, with discussions focusing on whether benefits will flow to the chain, the exchange, or DeFi protocols like Uniswap that handle routing. Some analysts are skeptical of the strategic rationale for choosing Avalanche over Ethereum, arguing that Ethereum’s interconnected ecosystem offers a stronger long-term value proposition, though they acknowledge that Uniswap is likely to benefit from the increased trade routing.