NYSE Owner ICE Taps tZERO to Build Infrastructure for Tokenized Securities

Intercontinental Exchange (ICE), operator of the New York Stock Exchange, has collaborated with blockchain infrastructure provider tZERO to develop the essential systems for its anticipated market of tokenized securities. On Monday, the firms announced tZERO's collaboration with ICE to develop transfer-agent and broker-dealer infrastructure for the settlement of tokenized securities on ICE's forthcoming digital trading platform.

ICE will also contribute to tZERO's most recent funding round and license its collection of 103 blockchain patents. The amount of the investment remains undisclosed.

The details of the partnership are subject to regulatory, technical, and operational prerequisites. tZERO is anticipated to become an approved digital transfer agent and subscriber to the platform, potentially playing a central role in the issuance, transfer, and recording of tokenized shares. Transfer agents are responsible for maintaining ownership records and processing changes when securities are exchanged.

Michael Blaugrund, ICE's Vice President of Strategic Initiatives, stated that tZERO's expertise in regulated on-chain infrastructure makes them a valuable partner in expanding ICE's digital transfer agent program for tokenized securities trading and settlement.

As part of the partnership, ICE and tZERO will also examine the potential use of tokenized assets as collateral at ICE clearing houses and other affiliates. In March, ICE chose Securitize to serve as a digital transfer agent for its planned tokenized securities platform. Securitize and tZERO are currently entangled in a patent dispute, with Securitize suing tZERO in June, claiming that tZERO's patents were infringed.

The collaboration arrives as major financial entities are increasingly investigating tokenization. Citi has projected that the tokenized securities market could reach $5.5 trillion by 2030. ICE's shares are currently trading at $159.36 each, down approximately 2% today.