Changpeng Zhao (CZ), the founder of Binance and a prominent figure in the cryptocurrency industry, has expressed a highly positive outlook on the New York Stock Exchange's (NYSE) recently announced tokenized securities platform. CZ believes this development is exceptionally bullish for both the broader crypto sector and crypto exchanges.
In his assessment, CZ stated, "This development is bullish for cryptocurrencies and crypto exchanges."
Revolutionary Blockchain-Based Trading Environment
The NYSE's new platform is designed to establish an entirely novel transaction environment, moving beyond simply integrating blockchain technology into its existing infrastructure. This innovative structure is set to introduce several key features, including continuous 24/7 trading, instant settlement capabilities that bypass the traditional T+1 model, and the utilization of stablecoins for funding instead of relying on conventional bank transfers. Furthermore, the platform will facilitate the direct issuance of securities as digital assets, signifying a fundamental shift from merely digitizing traditional financial infrastructure to creating a completely new marketplace built from the ground up on blockchain technology.
This strategic move by the NYSE will effectively result in the operation of two parallel exchanges. The established traditional exchange will continue its operations with its customary limited trading hours, delayed settlement processes, and reliance on banking infrastructure. Concurrently, the new platform will offer uninterrupted 24/7 trading, featuring instant clearing and payment rails powered by stablecoins. This dual-exchange approach allows the NYSE to embrace both traditional and digital finance models simultaneously, rather than being forced to choose between them.
Divergence from Industry Trends
While other major players in the financial sector are largely concentrating on tokenizing existing assets – for instance, the DTCC is tokenizing securities held in custody, State Street is focusing on money market funds and ETFs, and Nasdaq is developing regulations for tokenized transactions alongside traditional systems – the NYSE's approach is distinct. The NYSE plans not only to issue shares on-chain but also to develop a next-generation trading platform for these digital assets. This ambitious strategy positions the NYSE in direct competition with emerging projects such as Figure's OPEN platform and Superstate.
The advent of tokenized shares promises to usher in a new financial order. In this paradigm, consensus will be achieved on-chain, asset storage will be managed through digital wallets rather than custodians like DTCCs, transactions will operate without interruption, and capital creation will be facilitated through stablecoins.