NYSE Taps Blockchain.com to Reach Investors With Tokenized Stocks
A new partnership between NYSE and Blockchain.com, formalized through a memorandum of understanding, reveals that NYSE taps Blockchain.com to reach crypto investors. This collaboration aims to facilitate the offering of tokenized U.S. stocks and exchange-traded funds (ETFs) on the NYSE's upcoming 24/7 digital trading platform.
The agreement also includes data sharing provisions, with Intercontinental Exchange (ICE) distributing Blockchain.com's crypto data, and Blockchain.com integrating NYSE feeds into its application. The planned NYSE platform is not yet operational and requires regulatory approvals, with specific launch dates and financial terms undisclosed.
Benefits of Tokenized Stocks and Market Access
Tokenized stocks are blockchain-based assets representing shares of publicly traded companies. They offer advantages such as fractional ownership, extended trading hours, and faster settlement processes. ICE, NYSE's parent company, announced its development of a digital alternative trading system (ATS) in January, designed for 24/7 trading and immediate on-chain settlement.
This partnership grants NYSE access to a large base of crypto-native investors, as Blockchain.com boasts over 44 million verified accounts across more than 70 jurisdictions. Peter Smith, CEO and co-founder of Blockchain.com, emphasized that individuals should not face limitations in stock ownership due to geography or access to brokerage services.
Regulatory Landscape and Competitive Environment
The timing of this collaboration aligns with recent regulatory developments. The SEC recently introduced an “innovation exemption,” allowing qualified platforms to trade tokenized U.S. stocks on public blockchains without requiring full exchange registration. This exemption followed the stalling of the Clarity Act in the Senate.
Blockchain.com, which confidentially filed for a U.S. IPO in May, faces increasing competition in the tokenized securities market. Coinbase, for example, launched tokenized stocks for non-U.S. users on its Ethereum layer-2 network, Base, in August. Other crypto platforms are also actively developing their own tokenized stock offerings for both U.S. and international users.