Columbia Prof Calls NYSE Tokenization Plan ‘Vaporware’ Warns

NYSE and ICE unveil blockchain post-trade system for 24/7 trading and instant settlement of stocks and ETFs amid debate over vague technical details

  • NYSE and parent Intercontinental Exchange announced a blockchain platform to enable 24/7 trading and instant settlement of stocks and ETFs.
  • A Columbia Business School professor criticized the announcement as lacking detail and called it “vaporware.”
  • Key technical and business questions remain, including chain choice, permissioning, tokenomics, and fees.
  • Some industry figures praised the move as a positive step for native on-chain tokenized equities.
  • Ark Invest projects the real-world-asset tokenization market could grow from $22.2 billion to $11 trillion.

NYSE and its parent Intercontinental Exchange said on Monday they will build a blockchain-based post-trade system to enable 24/7 trading and instant settlement of stocks and exchange-traded funds, with planned multi-chain support and custody features. The firms framed the effort as an infrastructure upgrade for tokenized real-world assets.

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Omid Malekan raised doubts in an X post, calling the announcement "vaporware" and noting many unanswered questions. He highlighted uncertainty about which chain would be used, whether tokens would be permissioned or permissionless, and how tokenomics and fees would be structured.

Malekan expanded on his critique in an opinion piece, arguing that the exchange’s business model rests on a "highly centralized and oligopolistic architecture." He added that, "Tokenization represents a radically different architecture. It requires different skills and business models to be useful," and said he could not see how the exchange’s tokenization-focused blockchain would succeed without major changes.

Other industry voices reacted positively. Carlos Domingo, founder and CEO of Securitize, wrote on X that, "On-chain trading of native tokenized equities coming from NYSE, no wrappers, no derivatives, no tokenized entitlements, bullish." Alexander Spiegelman, head of research at Aptos Labs, posted on X that, "It’s about time we put the best tech to use."

ARK Invest projected the real-world-asset tokenization market could expand from $22.2 billion to $11 trillion.

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