Criticism of NYSE tokenization plan
The New York Stock Exchange (NYSE) recently announced plans to integrate blockchain technology to enable 24/7 trading and instant settlement of stock and ETF transactions. Additionally, NYSE intends to offer custody services based on blockchain.
However, Columbia University professor Elizabeth Uitto has expressed skepticism about these plans, calling them 'vaporware'.
According to Uitto, many large financial institutions claim to be experimenting with blockchain, but concrete results are yet to be seen. She noted that implementing such ambitious projects would require years of testing and regulatory approval.
The expert also emphasized that distributed ledger technologies are still not ready to handle the high-load systems of a stock exchange. Uitto pointed out that existing blockchain platforms cannot process millions of transactions per second, as required by the NYSE.
Conclusions and Prospects
Professor Uitto's comments show that major financial players often make loud announcements about their plans to implement innovative technologies, but the actual realization of these ideas can take years. Blockchain still has performance limitations that need to be overcome before it can be fully integrated into the infrastructure of stock exchanges.
However, NYSE's experiments with blockchain demonstrate the interest of the large financial sector in new technologies. In the future, we may well see the integration of blockchain and cryptocurrencies into the traditional financial industry, but this process is unlikely to be fast.