Columbia University professor says NYSE tokenisation plan is “nothing more than a concept without substance”

Criticism is mounting that the New York Stock Exchange’s (NYSE) newly unveiled concept for a blockchain-based tokenised trading platform lacks clarity and substance. Observers say the structural constraints of traditional financial infrastructure could clash with the underlying philosophy of tokenisation.

According to Cointelegraph on the 22nd, Omid Malekan, a professor at Columbia Business School, said in a recent post on X that the NYSE’s tokenisation plan is “closer to vaporware.” He cited the absence of details on the platform’s technical architecture and operating model.

Malekan noted that the NYSE’s announcement failed to explain core elements such as which blockchain it would be built on, whether it would be permissioned or permissionless, and how token design and fee structures would work. Vaporware refers to a product that is announced with plans for release while its actual implementation remains unclear.

Earlier, the NYSE and its parent company Intercontinental Exchange (ICE) said they are developing a platform that would support 24-hour trading and instant settlement for stocks and exchange-traded funds (ETFs) via a blockchain-based post-trade system. They also said it would include multichain support and custody functions.

However, Malekan took issue with the fact that the NYSE’s existing business structure is based on a highly centralised oligopolistic system. In an essay for Fortune, he wrote that “unless the NYSE gives up many of its existing partner relationships, computer science or cryptography alone cannot overcome the structural limitations.”

He likened the NYSE’s move to AT&T’s attempt to seize the initiative in the early internet era in the late 1990s. “Leading one technological era does not guarantee success in the next,” he said, stressing that “tokenisation requires an entirely different architecture and business model.”

Meanwhile, some in the industry argue the NYSE’s effort is a positive signal for the broader digital-asset sector. Carlos Domingo, CEO of Securitize, said “tokenised stocks that trade directly on-chain, without derivatives or wrappers, are clearly progress.”

The NYSE has been asked to provide additional clarification regarding the criticism. The debate over blending traditional finance with blockchain technology is expected to continue for some time.