Intercontinental Exchange (ICE), which owns and operates the New York Stock Exchange (NYSE), has developed a new blockchain platform that will allow investors to trade stocks around the clock.
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Management at Intercontinental Exchange says they’re seeking regulatory approval for a “tokenized securities platform” that will enable investors to trade stocks and fractional shares 24 hours a day, seven days a week.
Intercontinental Exchange is working with financial institutions such as Bank of New York Mellon (BK) and Citigroup (C) to support tokenized deposits and operate the 24/7 trading on the New York Stock Exchange. However, the tokenized platform still requires approval from the U.S. Securities and Exchange Commission (SEC) before it can be formally launched.
Tokenization Explained
Tokenization is when ownership rights to a stock or other security are digitized so that they can be traded nonstop. ICE is the latest stock exchange to move toward around-the-clock trading. Last September, the NYSE’s main rival Nasdaq (NDAQ) said that it had asked the SEC to allow investors to trade tokenized versions of stocks on its exchange.
Elsewhere, the online trading platform Robinhood Markets (HOOD) and cryptocurrency exchanges Coinbase (COIN) and Gemini (GEMI) have also proposed launching tokenized versions of assets such as stocks, bonds, and gold. The companies say they’re responding to demand from investors who increasingly want the ability to trade securities at all hours.
Is ICE Stock a Buy?
Intercontinental Exchange’s stock has a consensus Strong Buy rating among nine Wall Street analysts. That rating is based on eight Buy and one Hold recommendations issued in the last three months. The average ICE price target of $191.44 implies 10% upside from current levels.
