NYSE and Blockchain.com Partner to Offer Tokenized US Stocks

NYSE and Blockchain.com agree to trade tokenized equities

Blockchain.com and the New York Stock Exchange (NYSE) have signed a memorandum of understanding. The agreement would allow Blockchain.com users to access tokenized US stocks and exchange-traded funds (ETFs). These are digital tokens backed by traditional company shares and investment funds.

The trading would happen on NYSE’s planned digital alternative trading system, or ATS. This is a platform for trading securities that is not a traditional stock exchange. The deal is subject to regulatory approval.

Key details of the partnership

• Blockchain.com will distribute tokenized US equities and ETFs through NYSE’s digital platform.
• The NYSE affiliate ICE Data Services will share crypto market data with Blockchain.com clients.
• Blockchain.com will add ICE and NYSE market data feeds to its own platform.
• The move expands NYSE’s tokenized securities offering to Blockchain.com’s global customer base.

Focus on retail trading and weekend access

Industry observers believe the partnership targets individual investors. Reid Noch, vice president of US equity market structure at TD Securities, described NYSE’s planned platform as a "play for retail flow." He noted that the system is designed for 24/7 trading and uses a request-for-quote function.

Noch said that because retail trades are pre-funded, the shift to instant settlement should not change existing workflows for small investors. He highlighted weekend trading as a major benefit. "This could be impactful for retail heavy names or around episodic news events," he said, comparing it to previous market behavior during global conflicts.

Broader race for tokenized stocks

This deal comes as major exchanges compete to bring traditional assets onto blockchain networks. Blockchain.com joins other platforms like Kraken, Binance, Coinbase, and Robinhood in offering some form of onchain equity access. Kraken has also partnered with Nasdaq for a separate model.

Talos, a digital asset technology firm, noted that crypto venues are becoming multi-asset platforms. The firm’s Tanay Ved said traditional assets are adopting the 24/7, programmable structure pioneered by crypto. However, Ved warned that different models involve trade-offs between ownership and accessibility.

Data from RWA.xyz shows the tokenized stock market is growing. Total distributed value reached $3.14 billion as of Wednesday, up more than 18% in 30 days. The number of holders climbed nearly 72% to 3.87 million.

Regulatory environment shifts

The partnership follows a recent decision by the US Securities and Exchange Commission (SEC). Less than a week ago, the SEC introduced a five-year "Innovation Exemption" for certain tokenized securities venues. This allows eligible platforms to use permissioned automated market maker liquidity pools without being treated as traditional exchanges.

Under the exemption, tokenized stocks must carry the same rights and privileges as traditional shares. This requirement excludes some existing products from Kraken and Robinhood, which provide exposure to equities but do not grant full shareholder rights. SEC Commissioner Hester Peirce stated that the exemption covers one specific model but leaves room for other approaches in the future.

What happens next

The partnership remains subject to regulatory approval. NYSE and Blockchain.com will need to secure necessary permissions before launching the tokenized trading platform for users.

Sources

• Cointelegraph