ICE partners with tZERO to build tokenized securities infrastructure for NYSE-affiliated market
Intercontinental Exchange (ICE), the company that owns the New York Stock Exchange, has partnered with blockchain firm tZERO to develop infrastructure for its planned market for tokenized securities, a type of digital asset representing ownership of traditional financial instruments like stocks.
The collaboration will focus on building transfer-agent and broker-dealer systems needed to settle trades of tokenized securities on a blockchain, ensuring ownership records and transfers comply with securities regulations.
Key details of the partnership
- ICE will invest in tZERO’s latest financing round, though the amount was not disclosed.
- ICE will license tZERO’s portfolio of 103 blockchain patents.
- tZERO is expected to become an approved digital transfer agent for ICE’s NYSE-affiliated platform, pending regulatory and technical approvals.
- The two companies will explore using tokenized assets as collateral at ICE’s clearing houses.
Broader context
The partnership highlights the growing focus on the technical and regulatory infrastructure needed to support tokenized securities, beyond just placing traditional assets on a blockchain. This includes trading, settlement, ownership tracking, and collateral management within existing financial rules.
Earlier this year, ICE also selected Securitize, another blockchain firm, as a digital transfer agent for its planned platform. Securitize and tZERO are currently involved in a legal dispute over patent infringement claims.
Why this matters
Tokenized securities, which use blockchain technology to represent ownership, are gaining attention from major financial institutions. The market for these assets is projected to grow significantly, with Citi estimating it could reach $5.5 trillion by 2030 as banks and asset managers experiment with moving traditional assets onto blockchain systems.
