The New York Stock Exchange selected Avalanche as core ledger technology for a planned tokenized securities platform, subject to regulatory approval. Experts call it a credibility win for the network, but warn it may not lift the AVAX token.
The New York Stock Exchange selected Avalanche to provide infrastructure for a tokenized securities platform it is preparing. Experts say the choice is a big deal for Avalanche's reputation, yet it may not translate into higher value for the AVAX token.
Avalanche to serve as the settlement layer
Ava Labs announced on Monday that Avalanche would act as the core ledger for a platform built by NYSE parent company Intercontinental Exchange. The product will be designed to allow 24/7 trading, clearing, and settlement of tokenized securities, subject to regulatory approval.
Carlos Guzman, research analyst at market maker GSR, called the decision "definitely a big win for the project." Luther Maday, head of North America at Mercuryo, said the choice followed a year of testing on Avalanche.
Why AVAX may not benefit directly
AVAX rose 3.6% in the past day to $8.64, according to Decrypt data. Even so, experts warn that providing infrastructure does not necessarily mean a long-term increase in token value.
The reason is where the activity will run. NYSE activity will use dedicated Avalanche infrastructure rather than the public C-Chain, where most of the network's activity happens. Maday said he would be careful about translating the news directly into expectations for activity on that chain.
Still, Maday suggested that stablecoin liquidity, validator activity, and network fees could see a boost. He also said to watch how the AVAX token is used within the dedicated infrastructure.
Wall Street's wider tokenization push
The NYSE has also teamed up with Blockchain.com to sell tokenized stocks and ETFs to crypto investors. Not every company wants in: all seven of the "Magnificent Seven" stocks opted out of having their shares tokenized on the OKX-ICE venue.
Misha Putiatin, founder of Symbiotic, said the main question is whether Avalanche can capture value, something other blockchains have struggled to do.
Source: Decrypt
Trading involves risk.
Risk Disclaimer
