Key Takeaways
- The New York Stock Exchange (ICE) is developing a groundbreaking blockchain-powered platform for 24/7 trading and instant settlement of tokenized stocks and exchange-traded funds (ETFs), signaling a major shift in market infrastructure.
- France has approved a Finance Bill for 2025 that introduces a significant corporate income tax (CIT) surcharge on large companies, with rates up to 41.2% for those with revenues exceeding €3 billion, as part of an austerity budget.
- The NYSE's move could revolutionize global market accessibility and efficiency, while France's new tax measures are set to impact the earnings and investment strategies of major corporations operating within the country.
The financial world is witnessing significant developments on both sides of the Atlantic, with the New York Stock Exchange (ICE) pioneering a blockchain-based trading venue and France enacting new corporate tax hikes. These moves are set to reshape market infrastructure and corporate fiscal landscapes, respectively.
NYSE Forges Ahead with Blockchain for Digital Assets
The New York Stock Exchange (NYSE), a subsidiary of Intercontinental Exchange, Inc. (ICE), has announced the development of a cutting-edge platform designed for the trading and on-chain settlement of tokenized securities. This initiative marks a substantial leap into the digital asset space, aiming to facilitate 24/7 trading of tokenized stocks and exchange-traded funds (ETFs).
The new digital platform will integrate the NYSE's advanced Pillar matching engine with blockchain-based post-trade systems, enabling features such as instant settlement, orders denominated in dollar amounts, and stablecoin-based funding. Subject to regulatory approvals, this venue will support both tokenized shares fungible with traditionally issued securities and natively issued digital securities. Tokenized shareholders are expected to retain traditional dividend and governance rights.
This strategic development is a core component of ICE's broader digital strategy, which includes preparing its clearing infrastructure for round-the-clock trading and the potential integration of tokenized collateral. ICE is actively collaborating with major financial institutions, including BNY Mellon (BK) and Citi (C), to support tokenized deposits across its clearinghouses. This collaboration aims to empower clearing members to manage funds outside traditional banking hours, meet margin obligations, and accommodate funding requirements across various jurisdictions and time zones. The move underscores a growing institutional recognition of blockchain's potential to enhance efficiency and accessibility in global financial markets.
France Extends Corporate Tax on Big Companies
In Europe, the French Parliament has approved the Finance Bill for 2025, introducing a temporary corporate income tax (CIT) surcharge on large companies operating in France. This measure is part of a broader austerity budget and aims to appease left-wing political factions by promoting "fiscal justice".
The new surcharge will apply to standalone companies or tax-consolidated groups that generate revenues of at least €1 billion in France. Companies with revenues between €1 billion and €3 billion will face a 20.6% surcharge, while those exceeding €3 billion in revenue will incur a substantial 41.2% surcharge on their corporate income tax. This exceptional contribution is slated to apply to the first fiscal year ending on or after December 31, 2025.
Additionally, the bill includes a new tax on share capital decreases resulting from share-buyback transactions, applicable from March 1, 2025, for French-headquartered companies with revenues surpassing €1 billion. These fiscal adjustments follow earlier endorsements by French President Emmanuel Macron in October 2024 for temporary taxes on large companies, forming part of a wider government strategy to implement €60 billion in spending cuts and tax increases to address a widening budget deficit. The measures are expected to generate approximately €20 billion through increased revenues from wealthy individuals and large corporations.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.