NYSE Picks Avalanche for Tokenized Stock Settlement as Securitize Heads Into Q3 Earnings

Securitize (NYSE: SECZ) reports third-quarter results after the close today, hours after the New York Stock Exchange named the blockchain it will use to settle trades on its upcoming tokenized securities platform. Securitize is one of six transfer agents in the NYSE’s tokenized stock network, which puts the company close to one of the biggest structural shifts on Wall Street.

Key Points

• The NYSE said Monday it will use Avalanche as the core ledger for clearing and settling trades on its tokenized securities platform.
• The exchange is targeting 24/7 trading, instant settlement and stablecoin-based funding, pending regulatory approval.
• Securitize is one of six transfer agents in the NYSE’s tokenized stock network.
• Securitize reports Q3 results at about 4:15 p.m. ET today, with analysts expecting revenue of about $17.6 million.

What the NYSE Announced

Under the plan, Avalanche will supply the ledger technology for the clearing firm behind the NYSE-affiliated alternative trading system. The platform is designed to handle tokenized stocks issued on multiple blockchains, with Avalanche recording and settling the trades. Meanwhile, the NYSE will pair its Pillar trading engine with blockchain-based clearing, settlement and custody.

“We are picking the right technology for each job,” said Dennis Lee, the NYSE’s head of digital issuance. The exchange has not set a launch date, and the platform still needs regulatory approval.

Where Securitize Fits

The NYSE expanded its tokenized stock transfer agent network to six firms last week. Securitize sits alongside tZERO, Broadridge, Computershare, Equiniti and Superstate. Transfer agents keep the official record of who owns a security, so they are a core part of any tokenized stock system.

Securitize has been building toward this moment. Last month, PRISM MarketView covered how the company launched tokenized U.S. stocks on Solana with NYSE 24/7 trading in its sights.

A Crowded Race

The NYSE is not alone. Nasdaq is developing its own tokenized stock infrastructure, including a partnership with Kraken’s parent company. DTCC launched a tokenization service last month focused on custody and transfers. In addition, the NYSE’s parent, ICE, is working with OKX on a separate venue under the SEC’s innovation exemption. As a result, the question for investors is shifting from whether tokenized stocks arrive to which providers capture the business.

What to Watch Tonight

Securitize releases Q3 results at about 4:15 p.m. ET, followed by a conference call at 5:30 p.m. ET. Analysts expect a loss of $0.03 per share on revenue of about $17.6 million. Expectations have cooled, however: revenue estimates were revised lower three times over the past three months.

Investors will likely focus on any update on the company’s NYSE role, tokenized asset volumes and its path to profitability. The stock traded near $7 this morning, down about 5%, giving Securitize a market value of roughly $1.1 billion. PRISM MarketView recently looked at the wider sector in Fintech’s earnings divide, where profitable platforms are pulling ahead.

Securitize is a component of the PRISM Fintech Index.