Bankless

The Largest Securities Exchange in the World is Coming Onchain | Michael Blaugrund of NYSE and Carlos Domingo of Securitize

1h 5min

The Bankless episode features Carlos Domingo of Securitize and Michael Blaugrund of NYSE discussing their partnership to bring blockchain-native securities on-chain. Securitize will act as the first digital transfer agent, minting tokenized equities on public blockchains, while NYSE is launching an Alternative Trading System (ATS) for 24/7 trading and instant settlement of these securities. This initiative aims to modernize financial markets by leveraging blockchain technology for efficiency and new utility, with a vision for widespread tokenization of US equities within 3-5 years.

Summarized by Podsumo

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✨ Key Takeaways

1

NYSE and Securitize Partner for On-Chain Securities: Securitize is named the first digital transfer agent for NYSE's upcoming tokenized securities platform, enabling the minting of blockchain-native public equities on various public blockchains.
2

New NYSE Alternative Trading System (ATS): NYSE is launching an ATS that will offer 24/7 trading and instant atomic settlement for tokenized equities, with an expected launch in Q4 this year (subject to regulatory approval).
3

Massive Market Potential: The US equities market is worth ~100 trillion. Even 1-2% tokenization could double the size of the entire crypto market, with a projected 3-5 year timeline for significant adoption.
4

Permissioned Public Blockchain Use: Tokenized securities will reside on public blockchains (e.g., Ethereum, Solana) but will be permissioned (requiring KYC/whitelisted wallets) to comply with US securities regulations, allowing for features like asset recovery.
5

DeFi Integration and Efficiency: Tokenized equities are expected to integrate with DeFi lending protocols, offering a more efficient way to borrow against assets and unlock new applications, addressing significant inefficiencies in traditional stock lending.

💬 Notable Quotes

"I don't think any part of crypto has grown that fast. So it kind of feels that way for tokenization that we're at the end of the beginning."

— Carlos Domingo
"Just taking 1% or 2% of stocks on chain doubles the size of crypto."

— Carlos Domingo
"By 20th 36, 10 years from now, I'll be stunned if it's diminimous."

— Michael Blaugrund