ICE’s Sprecher: ‘Tokenization is Not a Novelty’

Jeff Sprecher, Chair & Chief Executive of ICE, said in a story in Markets Media news that the firm is not pursuing tokenization as a novelty or as a substitute for how markets operate. “Today, we’re exploring tokenization as a potential evolution of existing market infrastructure,” he said. “One that could further improve capital efficiencies, broaden access and advance settlement processes, such as our recent announcements with BNY and Citi to accept tokenized collateral, all while preserving the safeguards governance and neutrality that institutional markets require, and that ICE is known for.” ICE is working with banks including BNY and Citi to support tokenized deposits across its clearinghouses to help members transfer and manage money outside traditional banking hours, meet margin obligations, and accommodate funding requirements across different jurisdictions and time zones.  ICE said that it is developing a platform for trading and on-chain settlement of tokenized securities. NYSE’s new digital platform will enable 24/7 operations, instant settlement, orders sized in dollar amounts, and stablecoin-based funding. Subject to regulatory approvals, the new NYSE venue will support trading of tokenized shares fungible with traditionally issued securities as well as tokens natively issued as digital securities. Sprecher highlighted that ICE plans to apply for regulatory approval for the new venue under existing federal laws and regulations and enable foreign distribution under its existing securities passporting relationships.