Blockchain.com and NYSE plan tokenized stock access

Blockchain.com and NYSE Group signed a memorandum of understanding on Sept. 23 to explore giving Blockchain.com users access to tokenized U.S.-listed stocks and ETFs through NYSE’s planned digital trading platform. The service would depend on the platform’s launch and any required regulatory approvals, the companies said.

How would Blockchain.com users reach the tokenized stocks?

The MOU outlines a distribution plan connecting Blockchain.com users to NYSE’s digital alternative trading system, or ATS. The exchange has previously announced the planned venue, but the companies have not said when it will launch or which countries would be eligible.

Blockchain.com said the collaboration aims to make tokenized versions of NYSE-listed stocks and ETFs available to its global customer base. It described the proposed access as around-the-clock. The announcement does not name the securities to be offered, explain how the tokens would be issued or specify what rights token holders would have.

Tokenization represents an asset with a blockchain-based token. Reuters reported that buyers of such stock tokens do not always receive the same rights as traditional shareholders, and that some products provide economic exposure without ownership of the underlying shares. The companies’ announcement did not detail the rights attached to the planned tokens.

What else did the companies agree to share?

The MOU also covers market data. Intercontinental Exchange’s data business, ICE Data Services, plans to distribute Blockchain.com’s crypto market data and analytics to its subscribers, while Blockchain.com plans to add certain ICE and NYSE data feeds to its app.

Blockchain.com said those feeds would bring real-time stock information to its more than 44 million confirmed accounts. The company also said the data exchange is intended to give traditional investors more information about digital assets. The announcement did not specify when either data service would begin.

Is tokenized stock trading already available on Blockchain.com?

Blockchain.com said it had already partnered with Ondo Finance to offer tokenized U.S. stocks to customers in Europe earlier this year. Reuters also reported that the company had begun selling tokenized stocks to European customers. The NYSE agreement describes a separate planned route through the exchange’s digital ATS, rather than a launch of that service.

NYSE Group President Lynn Martin said Blockchain.com’s international reach and digital-asset experience could complement the exchange’s tokenized securities platform when it launches. Blockchain.com CEO Peter Smith said the planned connection would extend access to digital assets to tens of millions of the company’s users.