Tokenization Push: NYSE-Securitize Deal and $355M Digital Asset Round

The New York Stock Exchange and Securitize agreed on March 24 to develop the technology behind a digital trading platform. On the same day, Digital Asset Holdings closed a $355 million investment round to expand the Canton Network, a permissioned blockchain used by Goldman Sachs and BNY Mellon.

Asset managers including Franklin Templeton and BNP Paribas expect tokenization to reshape capital markets, according to executives cited in the report. They see tokenization reducing settlement times and enabling fractional ownership of private assets. The infrastructure moves indicate the shift from pilot projects to production systems is accelerating, the report said.

The NYSE-Securitize platform is designed to support tokenized securities covering private equity and real estate. Securitize already operates a tokenization platform for funds and corporate equity. The partnership gives it access to NYSE's trading and listing infrastructure. The exchange plans to offer a regulated marketplace for digital assets, the companies said.

Digital Asset's Canton Network focuses on institutional settlement and data sharing across permissioned ledgers. The $355 million round, one of the largest in blockchain infrastructure, will fund development of cross-asset support and integration with custody banks. BNY Mellon and Goldman Sachs are among the network's users. Goldman Sachs, a Canton Network user, carries an AlphaScala Alpha Score of 59 out of 100, indicating a moderate outlook on the stock. The full profile is on the GS stock page.

The tokenization market has grown on the promise of faster settlement and lower costs. Adoption has been limited by liquidity constraints and regulatory uncertainty. The involvement of a national exchange and a large capital raise for network infrastructure address two of the main bottlenecks: distribution and trust. Industry forecasts for tokenized assets reach $10 trillion by 2030.

The NYSE deal follows similar moves by other exchanges into digital trading. The Swiss exchange SIX Digital Exchange has been operating since 2019. The London Stock Exchange is building a blockchain-based platform for private markets. The broader trend of institutional tokenization is covered in AlphaScala's crypto market analysis.

Digital Asset said the new capital will be used to add support for additional asset classes and expand geographic reach. The NYSE-Securitize platform has not announced a launch date.