Avalanche’s native token AVAX surged as much as 10 percent on Monday, becoming the top performer among the 100 largest cryptocurrencies by market capitalization. The rally followed confirmation that the New York Stock Exchange (NYSE) selected Avalanche’s blockchain to settle trades on a new platform for trading tokenized stocks.
As of 3:22 p.m. UTC, AVAX traded at $8.86, representing a daily gain of more than 8 percent, according to CoinGecko data. The token holds a market capitalization of approximately $3.95 billion, with $439.7 million in trading volume over the past 24 hours. Data from DeFiLlama shows the Avalanche blockchain’s total value locked (TVL) rose 4 percent in the same period to $633 million.
NYSE selects Avalanche for settlement layer
The NYSE announced plans to use Avalanche’s infrastructure to record and complete transactions on its upcoming digital trading platform. While the platform will support equities listed on various blockchains, Avalanche will serve as the ledger for trade settlement. Ava Labs, the developer behind Avalanche, stated that the exchange had spent about a year testing the technology before confirming the selection on Monday.
Dennis Lee, head of digital issuance at NYSE, said the exchange is evaluating how blockchain technology can expand equity offerings. “The upcoming digital trading platform will support equities listed on a range of blockchains, though the ledger that records and settles trades needs to be fast and reliable, let us control who can take part, keep costs predictable, and have a large community of developers behind it,” Lee said. “Avalanche meets all those needs.”
The Wall Street Journal reported that the platform could launch before the end of 2026 if it receives regulatory approval. Traditional US stock markets typically operate from 9:30 a.m. to 4:00 p.m. EST on weekdays, with trade settlement often taking at least one business day. The new system aims to facilitate around-the-clock trading for digital versions of stocks.
John Nahas, chief business officer at Ava Labs, told Cointelegraph that initial conversations with the NYSE team began nearly a year ago. “It’s an important step toward blockchain becoming foundational financial infrastructure,” Nahas said.
Broader institutional adoption trends
The NYSE’s move aligns with broader efforts by major financial institutions to integrate tokenized assets. In September, Nasdaq announced plans to invest $100 million in Payward, the parent company of cryptocurrency exchange Kraken, to launch its own tokenized stock platform, with an expected launch in the second quarter of 2027.
In October, the Depository Trust & Clearing Corporation (DTCC), which helps settle US securities trades, launched a service allowing financial firms to convert traditional securities into digital tokens. Frank La Salla, CEO of DTCC, stated that the initiative extends the corporation’s governance and operational standards into digital markets to support responsible institutional adoption.
Avalanche has also seen activity in international markets. In July, Japanese fintech company Progmat moved more than 452 billion yen worth of digital securities onto a dedicated Avalanche blockchain. Additionally, Aave Labs announced plans in September to launch a lending service on Avalanche that would allow financial firms to borrow Tether’s USAT stablecoin using tokenized assets as collateral.
