Economy: Avalanche positions itself on the settlement of tokenized securities on Wall Street

Avalanche behind the scenes of Wall Street. Ava Labs announced on November 9 that its technology would serve as a ledger for the company responsible for clearing and settling trades on the upcoming trading platform affiliated with the New York Stock Exchange (NYSE). The project aims for 24/7 operation, subject to regulatory approvals.

The key points of this article

Avalanche will provide the ledger used to record and settle transactions.

The future platform will support tokenized actions on multiple blockchains.

The NYSE emphasizes registry speed, cost predictability and access control.

Ongoing trading, clearing and settlement remain subject to regulatory approvals.

Avalanche intervenes after orders are executed

Avalanche's role begins after a buyer and seller meet. Once the order is executed, clearing establishes what each must pay or deliver. Settlement-delivery then occurs, when the buyer receives the securities and the seller receives the funds. It is to the company responsible for these operations that Ava Labs will provide its technology.

The project provides for an atomic regulation, which links the two parts of the exchange. Delivery of the title and payment are completed together, or the transaction is not completed. The platform aims to process these operations continuously for its subscribers. The actual deadline will also depend on the rules of the platform and the availability of securities and funds.

A common ledger for actions across multiple blockchains

According to Dennis Lee, head of digital issuance at the NYSE, the platform must be able to accommodate tokenized shares on several blockchains. The register which records and settles transactions will rely on Avalanche. The choice therefore concerns the common infrastructure used after the negotiation, while the securities may come from different networks.

Dennis Lee cites speed, reliability, cost predictability and the ability to control who can participate among the selection criteria. The press release describes a dedicated infrastructure. The technical details of the register and the commissioning schedule remain to be specified.