The New York Stock Exchange is developing a blockchain-based platform for 24/7 trading of tokenized US equities and ETFs pending regulatory approval. Tokenized securities are digital representations of traditional assets promising faster trade execution and liquidity. Analysts project $30 trillion in tokenized assets by 2034.

Leading firms like BlackRock, WisdomTree, and Franklin Templeton are tokenizing money market funds and mutual funds. Platforms like Robinhood and Kraken have tokenized hundreds of US stocks and ETFs for foreign investors. NYSE plans to operate Arca, its fully electronic exchange, 22 hours a day on weekdays, while Nasdaq seeks approval for 23-hour trading with a maintenance pause.

Benefits of tokenized assets and extended trading hours include more products and lower costs, according to Lucas Wennersten, founder of 49th Parallel Wealth Management. However, he warns of downsides like increased fraud, money laundering, and terrorism financing. Regulatory challenges and the impact on retail investors and the economy remain questions.

Most trading activity will likely still occur during regular hours, with lower liquidity and higher volatility outside normal sessions. The World Economic Forum raises concerns about measuring daily volume and defining opening or closing prices. Unlimited trading hours could render safeguards like circuit breakers ineffective.

Read more at Yahoo Finance: NYSE to Build 24/7 Tokenized Securities Trading Platform