NYSE and Blockchain.com partner on tokenized stocks
In brief
- Blockchain.com and NYSE Group signed MOU for tokenized stocks and ETFs on digital trading platform
- Regulatory approval required; NYSE's digital ATS launch pending
- Tokenized stocks enable fractional ownership, 24/7 trading, and instant settlement
What are tokenized stocks?
Tokenized stocks are blockchain-based tokens representing shares of listed companies. They're not new—Coinbase launched tokenized stocks on Base, its Ethereum layer-2 network, for non-U.S. users in August—but this partnership with the NYSE signals institutional acceptance. Backers say they enable fractional ownership, trading outside market hours and faster settlement.
The NYSE's digital venue promises something different from traditional markets. The exchange announced in January that it is building a digital alternative trading system (ATS) for digital trading. An ATS is a regulated marketplace that operates outside a traditional exchange, and this one promises 24/7 trading and instant on-chain settlement.
Regulatory tailwinds and scale
The timing matters. Last week, the SEC unveiled an "innovation exemption" letting qualifying venues trade tokenized U.S. stocks on public blockchains without registering as exchanges. That exemption is the regulatory pathway this deal likely depends on. The arrangement is subject to any required regulatory approvals, and the NYSE platform has yet to launch.
Blockchain.com brings reach. The company says it has more than 44 million confirmed accounts across more than 70 jurisdictions. That's a user base the NYSE can tap directly. The partnership also includes data distribution: ICE Data Services plans to distribute Blockchain.com's crypto market data to its subscribers, while Blockchain.com will integrate NYSE data into its platform.
Blockchain.com, which confidentially filed for a U.S. IPO in May, faces growing competition. Other platforms are already moving. Coinbase's tokenized stock offering on Base proved the market exists for non-U.S. users. Now the NYSE is betting it can capture that demand domestically—if regulators sign off.
"People shouldn't be limited in owning stocks based on where they happen to live or the brokerage and information they may or may not have access to" — Peter Smith, CEO and co-founder of Blockchain.com
