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BlackRock to Launch National Stock Exchange to Compete with NYSE, Tokenisation to Play Role?
- The world’s largest asset manager, BlackRock, is a major investor behind a push to launch a new US stock exchange based in Texas.
- The Texas Stock Exchange (TXSE) would compete with Nasdaq and NYSE, aiming to expand access to US capital markets for all investors and public companies.
Yeehaw! Could the home of black gold help unlock a blockchain and digital gold boom?
A new BlackRock-backed stock exchange to be launched in Texas has sparked renewed excitement among the crypto community about the widespread adoption of tokenised financial assets.
Investors including finance giants BlackRock and Citadel Securities have raised $120 million in capital to launch an electronic, national stock exchange that will enable trading in securities and exchange-traded products, to be headquartered in Dallas, Texas.
That makes the Texas Stock Exchange (TXSE) the most well-capitalised exchange to file for registration with the US Securities and Exchange Commission (SEC). An announcement about the new exchange stated: “The liquidity providers backing TXSE Group Inc. represent a significant portion of the equity volume on U.S. lit exchanges and together comprise a majority of all U.S. listed retail volume.”
With BlackRock CEO Larry Fink now bullish on a tokenised future—crypto circles are rife with speculation about blockchain integration with TXSE for tokenised securities and 24/7 trading.
Related: BlackRock CEO Larry Fink Says Tokenisation to Bring in Financial Revolution
Texas Stock Exchange Increases Competition: Does It Flag Tokenisation Uptake?
Coming up against incumbents like the New York Stock Exchange and Nasdaq, the Texas Stock Exchange (TXSE) will “ultimately create more competition around quote activity, liquidity and transparency, resulting in more consistent and reliable markets that benefit investors, global issuers and liquidity providers alike,” according to founder and CEO James Lee.
TXSE hopes to be facilitating trading by 2025 and accepting listings of companies by 2026. It could help open up public markets for more companies, including crypto companies looking to become publicly listed.
James Lee says Texas was the clear choice for a new exchange given its ability to attract business, expansions, publicly traded companies and equity-sponsored companies preparing to go public.
Texas and the other states in the southeast quadrant have become economic powerhouses. Combined with the demand we are seeing from investors and corporations for expanded alternatives to trade and list equities, this is an opportune time to build a major, national stock exchange in Texas.
James Lee, TXSE founder and CEO According to Texas Governor Greg Abbott, the state represents the eighth-largest economy in the world, with an annual GDP of US$2.35 trillion.
Related: BlackRock Advances Tokenisation Efforts with Upcoming Fund Launch Via Ethereum
With the world’s largest asset manager a key investor in TXSE, many are hopeful asset tokenisation will play a larger role as the exchange develops. BlackRock’s Larry Fink has previously said tokenisation is the “next step” for financial markets.
BlackRock now boasts the largest spot Bitcoin ETF and in March it filed a proposal with the SEC to launch a tokenised asset fund called ‘BlackRock USD Institutional Digital Liquidity Fund Ltd.’
Author
Jody McDonald
Jody is a Brisbane-based freelance writer who specialises in writing about business, technology, and the future of work.
