NYSE Tokenization Strategy Sparks Debate Over Missing Details
- Experts warn NYSE’s tokenization plan lacks a clear blockchain design and token economics.
- Centralization concerns rise as NYSE’s tokenization model appears to preserve intermediaries.
- Crypto industry leaders still view on-chain tokenized stocks as a major market milestone.
The NYSE tokenization plan has sparked debate over whether the New York Stock Exchange is poised to deliver a genuine blockchain platform or merely a broad vision. The proposal targets tokenized stocks and tokenized exchange-traded funds (ETFs) with modern market features.
Columbia Business School professor Omid Malekan criticized the plan as “vaporware,” arguing it lacks the details needed to judge feasibility. His remarks amplified wider skepticism about how traditional finance will execute real-world asset tokenization.
NYSE tokenization plan faces “vaporware” criticism on specifics
Malekan said the NYSE described outcomes without explaining implementation. He argued that the proposal does not read like a technical roadmap. He highlighted missing information about blockchain selection. Malekan said the NYSE did not state which blockchain network the platform would use.
He also said the exchange did not clarify whether it prefers a permissioned blockchain or a permissionless blockchain. In addition, he said the NYSE did not describe any hybrid architecture. Token economics drew similar criticism. Malekan said the announcement did not explain fee mechanisms, incentives, or token design choices.
Those gaps matter, he argued, because tokenized securities require clear operating rules. Consequently, he framed the announcement as conceptual messaging rather than execution planning.
Malekan also questioned what “multi-chain support” means in practice. He said the plan did not explain how the platform would operate across chains.
Related: NYSE Moves Toward On-Chain Trading With Tokenized Securities
ICE targets 24/7 trading and instant settlement for ETFs
The NYSE and its parent, Intercontinental Exchange (ICE), have outlined goals for a blockchain platform tied to real-world asset tokenization. The headline aims include 24/7 trading for stocks and ETFs. The proposal also targets instant settlement. In addition, it mentions multi-chain support and custody services, but it leaves core design decisions unspecified.
Malekan challenged the idea that continuous trading requires blockchain. He argued that exchanges already run powerful databases and could extend trading hours using conventional systems.
He raised similar doubts about instant settlement. Malekan suggested that settlement speed depends on market structure and business relationships, not only on software.
In addition, the critique points to a broader tension. Exchanges can modernize operations without adopting blockchain while tokenization claims a different value proposition. Still, ICE and the NYSE have positioned tokenized markets as a forward step. The plan’s stated features signal interest in new token listings and always-on access.
Centralization concerns shape tokenized stocks debate today
Malekan argued that the NYSE operates within a centralized market structure. He described the exchange model as highly centralized and oligopolistic. He said cryptographic technology does not change that structure by itself. However, he suggested that meaningful decentralization would require a shift away from existing frameworks.
That argument centers on access and intermediation. Malekan implied that tokenization may preserve current gatekeeping, rather than open markets broadly. Supporters in the crypto industry view the announcement as a positive signal. Carlos Domingo, chief executive officer of Securitize, said, “On-chain trading of natively tokenized stocks is a major positive development.”
Meanwhile, Alexander Spiegelman, head of research at Aptos Labs, described the timing as “timely” for traditional markets to adopt blockchain technology. Their comments reflect optimism that institutional momentum can accelerate the adoption of blockchain.
The discussion also touches decentralized finance (DeFi), which refers to blockchain-based financial activity that can reduce reliance on traditional intermediaries. Malekan argued that public access and bearer-like assets define permissionless systems more than simple cryptography.
Furthermore, the disagreement highlights the gap between vision and delivery in tokenization. Skeptics want architecture, token standards, and token economics before treating the plan as credible.
