The New York Stock Exchange (NYSE) and Blockchain.com have signed a memorandum of understanding to provide Blockchain.com users with access to tokenized U.S. stocks and exchange-traded funds (ETFs). This collaboration marks a significant step in bridging traditional financial markets with the digital asset space, reflecting a broader trend of convergence.
Under the agreement, Blockchain.com users globally will be able to access tokenized U.S. equities and ETFs traded on NYSE’s planned digital alternative trading system (ATS), pending regulatory approval. The partnership also includes a reciprocal exchange of market data. NYSE affiliate ICE Data Services will distribute Blockchain.com’s crypto market data and analytics to its clients, while Blockchain.com will integrate specific ICE and NYSE market data feeds into its platform.
The tokenized stock market is experiencing rapid growth. As of Wednesday, the total value of distributed tokenized stocks reached $3.14 billion, an increase of over 18% in the past 30 days. The number of holders for these tokenized assets has also surged by nearly 72% to 3.87 million during the same period, according to data from RWA.xyz.
This development occurs shortly after the U.S. Securities and Exchange Commission (SEC) introduced a five-year “Innovation Exemption” for certain tokenized securities venues. This exemption permits eligible venues to use permissioned automated market maker liquidity pools for trading without being classified as exchanges under the Exchange Act. A key condition requires tokenized stocks to offer the same rights and privileges as traditional shares. However, some existing products, like Kraken’s xStocks and Robinhood’s Stock Tokens, may not fully comply with these requirements in their current form, as they provide exposure to equities but do not grant holders the same rights as conventional shareholders.
Reid Noch, vice president of U.S. equity market structure at TD Securities, told Cointelegraph that NYSE’s planned tokenized ATS appears to be primarily targeting retail investors, citing its planned 24/7 trading and request-for-quote functionality. He noted that the transition to instant settlement would likely require minimal adjustments to existing retail workflows due to pre-funded trades. Noch emphasized that true weekend trading could be particularly impactful for heavily traded retail stocks or during significant news events.
Tanay Ved, senior research associate at institutional digital asset technology firm Talos, observed that crypto venues are increasingly evolving into multi-asset platforms, while traditional assets are adopting the 24/7, programmable structures pioneered by crypto. This trend is evident across major exchanges, with platforms such as Kraken, Binance, Coinbase, and Robinhood exploring their own methods for bringing equities on-chain.
SEC Commissioner Hester Peirce has stated that while the current exemption addresses one specific model for tokenized securities, other approaches outside this framework are possible. The partnership between NYSE and Blockchain.com is subject to regulatory approval, and its full impact on the evolving landscape of tokenized securities remains to be determined.
Why This Matters
The materials describe a narrow update: NYSE and Blockchain. The partnership is subject to regulatory approval.
Broader Context
Source materials place the factual news in this context: Blockchain.com users could gain access to tokenized US stocks and ETFs through NYSE’s planned digital trading platform under a new partnership, as bourses rush to deliver new trading.
