NYSE, Blockchain.com in tie-up to bring tokenized US stocks to crypto users
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Blockchain.com and the New York Stock Exchange (NYSE) have signed a memorandum of understanding to enable Blockchain.com users to access tokenized US-listed stocks and ETFs via NYSE’s upcoming digital trading platform. This arrangement includes distribution of tokenized securities on NYSE’s planned digital alternative trading system and an exchange of market data between NYSE affiliate ICE Data Services and Blockchain.com, all subject to regulatory approval.
Why it matters
The deal aims to broaden access to tokenized US equities and ETFs for Blockchain.com's global customers, potentially facilitating 24/7 trading and instant settlement for retail investors. It represents a shift toward the integration of traditional securities with crypto infrastructure, supporting the growing multi-asset capabilities of crypto trading platforms and blurring lines between crypto and traditional financial markets.
Key context
NYSE’s platform plans to offer tokenized securities with features like round-the-clock trading and request-for-quote functionality aimed primarily at retail investors. This follows wider industry trends where exchanges like Kraken, Binance, Coinbase, and Robinhood are exploring tokenized equity offerings, each balancing trade-offs between ownership rights and accessibility. The US Securities and Exchange Commission recently introduced a five-year Innovation Exemption to facilitate tokenized stock trading under regulatory conditions ensuring token holders retain rights equivalent to traditional shares.
Key numbers and entities
The NYSE, Blockchain.com, ICE Data Services, Kraken, Nasdaq, Binance, Coinbase, Robinhood, the US Securities and Exchange Commission (SEC), and individuals such as SEC Commissioner Hester Peirce and Reid Noch from TD Securities are mentioned. Tokenized stocks market data from RWA.xyz reported a market value of $3.14 billion, an 18% increase in 30 days, with 3.87 million holders up nearly 72%.
What remains unclear
Specific timelines for launching the NYSE’s digital trading platform and for regulatory approvals are not provided. Details on how the tokenized securities will be integrated technically on Blockchain.com’s platform or the full scope of market data sharing remain unspecified. The ultimate model that will dominate tokenized stock trading—ownership-based or derivative-based—is also yet to be determined.