The native token of Avalanche, AVAX, surged on Monday following the New York Stock Exchange’s announcement to utilize the Avalanche blockchain for a new platform facilitating round-the-clock trading of tokenized stocks. AVAX demonstrated a robust performance within the top 100 cryptocurrencies by market capitalization, climbing as much as 10% throughout the day.
AVAX Priced Higher, Network Metrics Improve
According to CoinGecko, AVAX later corrected to $8.86 but retained its daily gain above 8%. The token’s market capitalization reached approximately $3.95 billion, while its 24-hour trading volume soared to $439.7 million. Data from DeFiLlama indicated the total value locked in the Avalanche network increased to $633 million, reflecting a 4% rise in the last day.
Dennis Lee, head of NYSE’s digital asset unit, stated that the exchange is exploring blockchain technology to broaden the capabilities offered in stock transactions and selects the most suitable technology for each endeavor.
In January, NYSE initially unveiled plans for the platform. In September, Ava Labs disclosed that the exchange had been conducting tests on Avalanche for nearly a year. The decision to choose Avalanche as the preferred blockchain was finalized on Monday. Ava Labs is renowned for developing the Avalanche ecosystem.
Platform Targets Pre-2026 Launch
The anticipated platform is designed to allow investors to trade digital versions of stocks across different blockchains. Avalanche will record these transactions and facilitate the clearing process. Unlike traditional U.S. stock markets, which operate only during certain hours on weekdays and often require at least a business day to settle transactions, this new structure aims for quicker settlement and trading beyond conventional hours.
Dennis Lee emphasized that the new digital trading platform will support stocks listed on various blockchains, with a transaction infrastructure that must be fast, reliable, cost-predictive, and manageable, asserting that Avalanche meets these conditions.
The Wall Street Journal reports that the platform could launch before the end of 2026, pending regulatory approvals. John Nahas, Ava Labs’ director of business development, shared that initial discussions with the NYSE team began roughly a year ago and have progressed faster than anticipated, marking a significant advancement for integrating blockchain into financial infrastructure.
Wall Street Shifts Toward Blockchain-based Stock Trading
This strategic move occurs as major financial institutions pivot towards blockchain solutions to expedite stock trading and extend its accessibility to a 24-hour schedule. In September, Nasdaq announced a $100 million investment plan with Kraken’s parent company Payward to develop tokenized stocks, targeting a rollout in the second quarter of 2027.
The Depository Trust & Clearing Corporation (DTCC), pivotal in U.S. securities settlement, introduced a service in October that facilitates converting traditional securities into digital tokens. DTCC aims to form a foundational infrastructure for tokenized securities supported by a regulated framework.
Avalanche is also progressing in the tokenization of traditional finance assets. In July, the Japanese fintech company Progmat declared it had transferred over 452 billion yen of digital securities to a dedicated Avalanche blockchain. Furthermore, in September, Aave Labs planned a lending service allowing financial institutions to use tokenized assets as collateral to access Tether‘s USAT stablecoin.
