RBC Sees New Markets Expanding Exchange Revenue

RBC Capital Markets projects that tokenization and extended trading hours will expand market size for incumbents. The firm argues these trends create new revenue streams rather than cannibalizing existing products.

Ashish Sabadra, an equity analyst at RBC, stated that traditional exchanges are well positioned to capture this growth. He noted that viewing these shifts as market expanders is critical for strategic planning.

Major exchanges lead in tokenization

Nasdaq is designing an equity token with Kraken and DTCC for a 2027 launch. The exchange is also connecting European venues to Boerse Stuttgart’s settlement platform.

ICE is building a comprehensive platform covering tokenization and prediction markets. The company plans to launch its Digital Trading Platform in early 2027.

CME Group is furthest along in 24/7 trading with live crypto and gold futures. Cboe Global Markets is exploring blockchain primarily for collateral coordination.

Partnerships accelerate infrastructure development

ICE partnered with Securitize and tZERO to support its digital platform strategy. tZERO will serve as a design partner for the digital transfer agent.

The agreement includes a license for tZERO’s blockchain patent portfolio. This access covers 23 patent families and 103 individual patents for platform use.

Institutions recognize tokenization value

Alan Konevsky of tZERO stated that tokenized securities have passed a turning point. He noted that critical institutions are already deploying resources to operationalize these tools.

Konevsky emphasized that the genie cannot be put back in the bottle. He believes the shift toward onchain settlement is irreversible for major financial players.