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ICE-backed tokenized securities effort adds tZERO transfer and settlement
ICE will explore whether tokenized assets can be used as collateral at its clearing houses, alongside building onchain transfer-agent and broker-dealer infrastructure.
Intercontinental Exchange, the owner of the New York Stock Exchange, is expanding its tokenized securities push by partnering with blockchain infrastructure firm tZERO, according to CoinDesk.
The companies said they will work on transfer-agent and broker-dealer systems needed to settle tokenized securities trades onchain for an upcoming NYSE-affiliated platform, with tZERO expected to become an approved digital transfer agent and participant subject to regulatory and technical requirements. tZERO would help track tokenized-share ownership as it changes hands and ensure transfers comply with securities rules.
ICE will also invest in tZERO's latest financing round and license a portfolio of 103 blockchain patents. The firms said they will explore using tokenized assets as collateral at ICE clearing houses, which could allow tokenized securities posted in one context to back trades elsewhere in ICE markets.
The agreement underscores that Wall Street tokenization efforts are moving beyond putting stocks and bonds on blockchain rails, with the main work focused on the surrounding trading, settlement, ownership records, and collateral systems that must fit within existing securities rules. ICE previously tapped Securitize as a digital transfer agent for the planned NYSE-affiliated platform.