Honestly, that title is so sarcastic. So now the NY Stock Exchange is 'working on' something that's been around since the early days of bitcoin? You know, like trading crypto 24/7? Makes me think they’re just biding their time, waiting for their government pals to help wipe out the smaller exchanges first.
But if the article is right, and this actually involves trading stocks and similar securities digitally... hang on, isn’t everything already digital? I mean, blockchain-based? So what’s the point of all this 'tokenization' and using blockchain tech only on weekends and nights?
I'm really puzzled. Sure, 24/7 stock trading sounds awesome, but this press release has me scratching my head. What do you smart folks think?
RWA coins are something that is not new again but it has become common more recently on exchanges. Their market is 24/7 but I noticed that their trading volume is not high and not what can be compared on exchanges with the traditional stock exchanges. I can see RWA coins on almost all the exchanges that I am using.
Another one is the TradiFi which you can see on Bybit and Bitget. You can use it to trade like in the traditional way but the first difference is that the market is also available 24/7.
Once the market closes in the traditional market, the price movement of the coin will be sluggish in a way you will not like to trade the 24/7 coins when the traditional market is close. Come to think of it that when the market opens, the price of the RWA coins will still continue to be similar with the price of the stock or what it is pegged with.
It is something not new anymore to us on crypto exchanges.
I wouldn't be surprised. Whether they succeed is another matter.
It's not "solely" those tokens will be trading around the clock.
I think Tradfi has realized the disadvantage of cryptocurrencies being tradable 24/7/365, while the US stock market only has 252 trading days a year and only operates for 6.5 hours on those days.
Once they saw the disadvantage, they tried to take advantage of technology to offer new features. Cryptocurrencies and tokens already operate during those hours. With this, they aim to tokenize the assets that operate on the normal stock market, such as stocks and bonds, and operate during those hours, thus competing for market share against cryptocurrencies and crypto tokens.
But this market, as I understand it, will operate in parallel with the traditional market. You will only be able to buy and sell J&J shares on trading days during trading hours, whereas you will be able to buy and sell J&J tokens 24 hours a day, 365 days a year.
I had already anticipated or imagined that this would eventually happen to all real-world assets. Gold already has this. Now, everything in the stock market will create its own tokens and be traded on a special market that will be created. This is simply the creation of large-scale RWA that will be accommodated in a special exchange that certainly wants to be legal and comply with securities regulations.
Actually, they could clearly state that they are interested in crypto, but they are doing it timidly and don't want to admit it outright.
The tokenization of real-world assets has been a trend for several years now. Even Blackrock itself has invested in the development of RWA and the like. Last year, Blackrock planned to develop this, namely the tokenization of real-world assets. Perhaps they feel more confident after the success of their Bitcoin ETF. This will create a domino effect for all other companies worldwide. Therefore, it is not surprising that eventually, stocks will also become on-chain, with a 24/7 open market.
I wasn't really against NYSE being able to just work for certain hours, because truth be told it wasn't really technology that prevented it, it could work 7/24 for the past 4 decades but it did not. For one simple reason, the humans are not 7/24 species and NYSE is a New York related stock exchange, as in American, while there are some foreign companies too of course, it's still exchanged there.
This eventually means, it was mostly for Americans, and if you make it open after midnight for Americans, then yeah foreigners will have ease of access due to hours, but then you would be trading on American markets when Americans are asleep. That is why not being 7/24 is fine for me and I never thought they would change that. They may have end it later, like instead of five, maybe eight? But, seriously thought they would keep it within the day and not make it always open.
That is quite comical, but also still good in a way because it means that Bitcoin (and by extension other crypto type coins) have now reached a threshold where one of the biggest stock exchanges in the world realizes that they have to play catch up. It also gives additional credibility to any people that were still wary, potentially older generations, that it has been accepted by a more reputable name that they can trust. I'm not exactly sure about the way they will offer it, but I doubt that it will involve 24 hour stock trading because that is a fundamental shift in the way these exchanges have worked for decades, would have to tie into how other exchanges work and could potentially open up all sorts of vulnerabilities if not properly vetted or announced.
Nothing really impressive they are copying it and removing something Cool, Decentralisation
For a safer route, KYC and centralization.
Though I understand some would find safe better.
Limited liquidity at night hours could be an issue that would push volatility
Something I believe SEC would want to control.
News outlets say alot of things to get audience attention
And I believe they haven't touched on this area before because they were engaging in wait and see.
Stock exchanges do have the tech to let you trade around the clock they just don't want to implement it because services would be severely degraded when the volume goes down and institutional traders go to sleep.
With crypto it's a different story of course.
But you can actually see that after crypto more and more brokers started implementing round the clock stock trading too with interesting methods to do clearance of payments while stock markets were closed.
The big story is all about the infrastructure, we should be patient enough to see what comes up with its implementation. Some big figures like the name CZ bullish on the adoption. Personally, I am cool with the not scraping the traditional systems since I have always loved the idea of merging both digital and traditional which was formerly done all alone for five days a week. This information is a good way to define financial innovation and it brings a whole lot of benefits to the investors.
I may not know all the advantages but moving from five days in a week trading to 24/7 is growth at its finests. The only complainers are those who are not discipline enough to learn when to start and stop trading. And tokenization in conclusion benefits the US dollar increase. And for those splashing huge taxes, how do they expect such a business to flow in such toxic areas??? Trump accused the Mayor about it but I can't tell the details.