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Intercontinental Exchange has tapped tZERO to help build transfer-agent and broker-dealer infrastructure for its planned NYSE-affiliated market for tokenized securities.
The August 31 agreement makes tZERO a design partner for the Digital Trading Platform, which ICE plans to use for on-chain trading and settlement of public securities. The platform remains in development and requires regulatory approval before launch.
tZERO Will Help Build Digital Transfer-Agent Infrastructure
Under a memorandum of understanding, ICE and tZERO will work on standards for digital transfer agents, tokenization agents and broker-dealers participating on the platform.
tZERO is expected to become an approved digital transfer agent and subscriber once regulatory, technology and operational requirements are met. Its infrastructure would support the issuance, transfer and onchain settlement of blockchain-based securities.
ICE will also invest an undisclosed amount in tZERO’s latest financing round and license blockchain intellectual property from the company.
NYSE Platform Targets 24/7 Tokenized Stock and ETF Trading
NYSE first disclosed the Digital Trading Platform in January. The planned venue would support round-the-clock trading of tokenized US equities and ETFs, fractional shares and immediate settlement using tokenized capital.
The platform is designed to combine NYSE’s Pillar matching engine with blockchain-based post-trade infrastructure. ICE also plans to support multiple blockchains for settlement and custody and allow stablecoin-based funding.
ICE plans for tokenized securities to include both blockchain representations of conventionally issued shares and securities issued natively on-chain. The platform does not yet have a confirmed launch date.
tZERO Joins Securitize in NYSE Tokenization Buildout
tZERO is the latest company to join ICE’s tokenized-securities buildout. NYSE named Securitize its first eligible digital transfer agent in March, with Securitize Markets also expected to participate as a broker-dealer.
ICE and tZERO will separately explore whether assets tokenized through tZERO infrastructure could be used for collateral management across ICE clearing houses and other affiliates.
That work remains exploratory. The NYSE-affiliated trading platform is still subject to regulatory approval before tokenized securities can begin trading and settling on-chain.
