March 24 (Reuters) - The New York Stock Exchange, part

of Intercontinental Exchange ( ICE ), announced a collaboration

on Tuesday with digital asset company Securitize to help create

tokenized versions of traditional financial securities.

Securitize will serve as the first digital transfer agent

eligible to create blockchain-based securities for issuers of

corporate and exchange-traded funds on an upcoming

NYSE-affiliated Digital Trading Platform, the company said.

As part of the agreement, NYSE plans to work with Securitize

as a design partner to develop a digital transfer agent program

aimed at creating a system to help process tokenized securities

trades on the blockchain.

U.S. exchanges such as the NYSE and rival Nasdaq

are stepping up efforts to convert assets like stocks, bonds and

funds into blockchain-based tokens.

Tokenizing involves converting a real-world asset into a

digital token on a blockchain, or a decentralized, secure

digital ledger of transactions.

Earlier this month, the U.S. Securities and Exchange

Commission approved a Nasdaq proposal to allow certain stocks to

be traded and settled in tokenized form, according to a

regulatory filing.

"As we explore how tokenization can enhance capital markets,

it is critical that new infrastructure is developed in a way

that preserves the trust, transparency, and protections

investors expect" NYSE President Lynn Martin said.

The companies will also collaborate on developing standards

for digital transfer and tokenization agents, including

regulatory, operational and technology requirements for

institutional-grade infrastructure.