NYSE Picks Avalanche for Tokenized Stock Settlement as Solana Venue Takes Shape

NYSE Chooses Custom Avalanche Blockchain for Stock Settlement

Avalanche will provide the core ledger technology to the clearing firm supporting the upcoming NYSE-affiliated alternative trading system (ATS), according to a press release issued Monday. The platform is designed to support tokenized stocks issued across multiple blockchain networks, with trades recorded and settled through a custom Avalanche-based blockchain.

John Nahas, chief business officer at Ava Labs, said that the NYSE would operate its own blockchain built using Avalanche technology rather than rely on Avalanche's public network for settlement. The customized infrastructure will be tailored to the exchange's regulatory requirements, including controls over network participation.

Avalanche allows businesses to build dedicated blockchain networks with rules governing access and operations. Its Ava Cloud service supports the creation of these networks, while Ava Labs develops the underlying technology and tools.

"This has been over a year in the making," Nahas said, referring to the selection process. He added that the NYSE and Ava Labs conducted extensive technical, business and ecosystem reviews before reaching their decision.

Dennis Lee, head of digital issuance at NYSE, said the exchange needed technology capable of processing transactions quickly while maintaining predictable costs and controlling participation.

"At the NYSE, we're looking at how blockchain technology can expand what we offer in equities, and we're picking the right technology for each job," Lee said in a statement. "Avalanche meets all those needs."

The planned platform will combine NYSE's existing Pillar trading engine with blockchain-based clearing, settlement and custody infrastructure. Its intended features include continuous trading, instant settlement and stablecoin-based funding.

The system will also accommodate tokenized shares issued on other blockchain networks, connecting those assets to the NYSE's dedicated Avalanche chain for recording and settling transactions.

Avalanche's native token, AVAX, gained 8% over the 24 hours following the announcement.

The exchange has also expanded its network of transfer agents to six firms. Broadridge Financial Solutions (BR), Computershare, Equiniti and Superstate joined existing partners Securitize (SECZ) and tZERO. 

Formation Securities Plans Solana Stock Venue Under SEC Exemption

Formation Securities is pursuing a separate route through the SEC's innovation exemption, which permits qualifying platforms to experiment with tokenized U.S. stock trading under defined conditions.

The company said that it had notified the regulator of plans to operate a tokenized securities venue (TSV), with trading expected to begin in early 2027.

Formation's initial roster includes Galaxy Digital (GLXY), Exodus Movement (EXOD) and Forward Industries (FWDI). All three companies have signaled support for making tokenized versions of their shares available through the proposed marketplace.

The venue will use trading technology licensed from Orca, a decentralized exchange protocol built on Solana. Formation President Christopher Montagano previously served as Orca's chief legal officer.

The SEC's five-year innovation framework allows eligible marketplaces to use automated market makers (AMMs), which execute trades against pools of assets rather than conventional order books. Participation is limited to verified investors, with restrictions on trading volumes and the number of securities offered.

Investors would be able to hold tokenized shares in their own digital wallets, trade continuously using stablecoins and settle transactions instantly onchain. Under the SEC's requirements, these tokens would carry the same shareholder rights as conventional shares, including voting and dividend entitlements.

"Onchain equities are still nascent, but the SEC’s innovation exemption provides a thoughtful and regulated pathway to explore what we expect to become a meaningful segment of U.S. capital markets," Alex Thorn, Galaxy's head of firmwide research, said in a statement.

Solana Stock Activity Grows as Formation Secures Issuer Support

Solana has already attracted significant tokenized stock activity, although much of the trading involves synthetic products rather than tokens carrying direct shareholder rights.

According to RWA.xyz, Solana ranked third behind Ethereum and BNB Chain by tokenized stock value. Its trading activity led other blockchains over the preceding week.

Synthetic stock tokens provide exposure to changes in underlying share prices without necessarily granting ownership or the shareholder rights associated with the original securities. Formation's proposed marketplace instead plans to trade tokens that meet the SEC's shareholder-rights requirements.

The regulator's framework also gives issuers 30 days to object when unaffiliated third parties seek to tokenize their shares.

OKXICE, the proposed joint venture between NYSE parent Intercontinental Exchange (ICE) and crypto exchange OKX, faced substantial opposition after identifying companies for potential trading. Of the 62 issuers initially selected, approximately 90% had objected as of Friday, November 6. Apple, Microsoft and Meta were among those opposing the plans.

Formation adopted a different approach by obtaining support from its initial issuers before announcing the marketplace, Montagano said.

Galaxy Digital and Forward Industries already have tokenized shares listed through Superstate's Opening Bell platform. Exodus Movement previously issued tokenized shares through Securitize.

Formation plans to approach additional public companies over the next two months, positioning its marketplace as another distribution channel for issuers seeking to reach investors beyond traditional exchanges.

The company also intends to support multiple tokenization and custody providers rather than depend on a single firm.

Superstate and Securitize are expected to make tokenized shares available through the venue, while Anchorage Digital, BitGo and Fireblocks will provide custody-related access. Additional distribution partners include Alpaca, CoinList, Solflare, Squads and Jito's JTX trading interface.

"We're not sitting and cherry picking winners," Montagano said, referring to the decision to include competing providers.

Montagano said Formation wants to build a venue "that can be competitive with Nasdaq from a spreads perspective, from an efficiency perspective."