Through a preliminary agreement with Blockchain.com, the New York Stock Exchange (NYSE) has established a framework that could grant the cryptocurrency platform’s user base the ability to trade tokenized forms of U.S. equities and exchange-traded funds (ETFs).
A tokenized stock functions as a digital representation of a share maintained on a shared online ledger, known as a blockchain. Blockchain.com reports having over 44 million confirmed user accounts.
What the NYSE and Blockchain.com Tokenized Stocks Deal Covers
The memorandum of understanding (MOU)—a non-binding accord—was unveiled by both firms on Wednesday. The agreement outlines a prospective pathway for Blockchain.com participants to access the NYSE’s digital alternative trading system (ATS), which functions as a regulated marketplace distinct from a traditional stock exchange.
As detailed in the announcement, trading activities will commence strictly upon obtaining the necessary regulatory approvals.
Additionally, the arrangement includes a data exchange. ICE Data Services, a division of Intercontinental Exchange (ICE) which owns the NYSE, intends to distribute Blockchain.com’s cryptocurrency market data to its customer base. Concurrently, Blockchain.com plans to integrate real-time NYSE and ICE equity pricing directly into its application.
“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 of Blockchain.com, said in the release.
Why the NYSE Wants Crypto Users
In January, the NYSE initially revealed plans for the alternative venue, highlighting features such as continuous round-the-clock trading, instantaneous settlement of both shares and funds, the use of stablecoins (digital dollars) for funding, and fractional share purchases. Furthermore, the exchange indicated that token holders would retain their voting privileges and dividend benefits.
Noting that Blockchain.com maintains operations across more than 70 jurisdictions, NYSE Group President Lynn Martin described this global footprint as a “natural complement” to the initiative.
This partnership follows a recent U.S. Securities and Exchange Commission (SEC) decision from a week prior, which issued a five-year tokenized stock exemption. Under this exemption, the tokens must possess identical rights to standard shares while prohibiting synthetic replicas.
Financial institutions are also taking note of market valuations in this sector. This week, Cantor Fitzgerald projected a 95% upside potential for Securitize, a company specializing in converting equities into tokens. Meanwhile, the Citi Institute projects a base case valuation of $5.5 trillion for tokenized assets by the year 2030.
Neither organization has specified a launch timeline, as the initiative’s progression hinges upon securing regulatory green lights for the NYSE’s digital marketplace.