Overview
- Blockchain.com has entered into a memorandum of understanding with NYSE Group to provide tokenized U.S. stocks and ETFs via a new digital trading platform that will operate around the clock.
- The agreement includes data collaboration, with ICE distributing Blockchain.com’s cryptocurrency data and Blockchain.com integrating NYSE market feeds into its application.
- The NYSE's digital trading platform is not yet operational, as it awaits necessary regulatory approvals, and no specific launch date or financial details have been revealed by either party.
Blockchain.com aims to connect its platform with Wall Street, ensuring it remains accessible at all hours.
On Wednesday, the company announced a memorandum of understanding with NYSE Group to facilitate the trading of tokenized U.S. stocks and ETFs through the New York Stock Exchange’s forthcoming digital trading venue. This initiative is contingent upon obtaining the necessary regulatory approvals, and the NYSE platform has not yet been launched.
Tokenized stocks are essentially blockchain-based tokens that represent shares of publicly listed companies. Proponents argue that these stocks allow for fractional ownership, enable trading outside of traditional market hours, and facilitate quicker settlement processes.
The NYSE, which is owned by the Intercontinental Exchange, revealed in January its plans to create this venue as a digital alternative trading system (ATS). An ATS is a regulated marketplace that functions outside of conventional exchanges, promising 24/7 trading capabilities and immediate on-chain settlement.
This collaboration provides the NYSE with access to a base of crypto-savvy investors. According to Blockchain.com, it boasts over 44 million verified accounts spread across more than 70 countries.
"Individuals should not be restricted in their ability to invest in stocks based on their geographical location or the brokerage services available to them," stated Peter Smith, CEO and co-founder of Blockchain.com.
The agreement also encompasses data sharing initiatives. ICE Data Services will supply Blockchain.com’s cryptocurrency market data to its clients, while Blockchain.com plans to incorporate specific NYSE and ICE data feeds into its platform.
This development coincides with recent regulatory changes in Washington. Last week, the SEC introduced an "innovation exemption" that allows qualifying platforms to trade tokenized U.S. stocks on public blockchains without needing to register as exchanges. This announcement followed the stalling of the Clarity Act in the Senate, which aimed to formalize this and other crypto-related activities into law.
Blockchain.com, which confidentially filed for an IPO in the U.S. in May, is facing increased competition in the market. Coinbase recently launched its own tokenized stock offerings on Base, its Ethereum layer-2 network, targeting non-U.S. clients in August, while other cryptocurrency platforms are also racing to introduce their own tokenized stock products for users in both the U.S. and abroad.
Neither Blockchain.com nor NYSE has disclosed a timeline for the launch or any financial arrangements.