NYSE and Blockchain.com Partner to Offer Tokenized US Stocks to Crypto Users
The New York Stock Exchange (NYSE) and Blockchain.com have signed a memorandum of understanding to grant Blockchain.com users access to tokenized US-listed stocks and ETFs through NYSE’s planned digital trading platform. The partnership, which includes exchange of market data and aims to broaden digital asset offerings, comes amid rapid growth in the tokenized stocks market and following recent US SEC regulatory adjustments introducing an Innovation Exemption for certain tokenized securities venues.
Terms of the NYSE and Blockchain.com Partnership
According to the memorandum of understanding, Blockchain.com will distribute tokenized US equities and ETFs traded on NYSE’s digital alternative trading system (ATS), pending regulatory approval. This initiative will broaden NYSE’s planned tokenized securities offering by making them accessible to Blockchain.com’s global customer base. Additionally, the agreement includes a reciprocal exchange of market data: ICE Data Services, affiliated with NYSE, intends to distribute Blockchain.com’s crypto market data and analytics to its clients, while Blockchain.com will integrate selected ICE and NYSE market data feeds into its platform.
Features of NYSE’s Planned Digital Trading System
NYSE’s upcoming digital ATS is primarily aimed at retail investors, providing 24/7 trading and request-for-quote functionalities that differentiate it from traditional markets. Reid Noch from TD Securities highlighted that because retail trades are pre-funded, switching to instant settlement requires minimal changes to existing workflows. The ability to trade during weekends is considered a significant advantage, especially for retail-heavy stocks or during episodic news events, similar to how tokenized oil perpetual contracts reacted at the onset of the Iran conflict that began over a weekend.
Competition in the Tokenized Stock Market
Crypto venues are evolving into multi-asset platforms. Tanay Ved of Talos noted that traditional assets are increasingly adopting the 24/7, programmable structure pioneered by crypto. Kraken offers xStocks and collaborates with Nasdaq on a tokenized equity model, while Binance, Coinbase, and Robinhood have launched their own approaches to bringing equities onchain. Ved points out that these different methodologies involve trade-offs between maintaining ownership rights and providing user accessibility.
Growth of Tokenized Stocks Market and SEC’s Impact
The tokenized stock market is rapidly expanding, with distributed value reaching $3.14 billion—an 18% increase over the past 30 days—and holders rising nearly 72% to 3.87 million, according to RWA.xyz data. Following this trend, the US Securities and Exchange Commission (SEC) recently introduced a five-year “Innovation Exemption” allowing eligible tokenized securities venues to use permissioned automated market maker liquidity pools without being classified as exchanges under the Exchange Act. Venues qualifying for this exemption must ensure tokenized stocks confer the same rights and privileges as traditional shares. Some existing products, like Kraken’s xStocks and Robinhood’s Stock Tokens, do not currently meet these criteria due to limited shareholder rights. However, SEC Commissioner Hester Peirce emphasized that this exemption applies to a specific tokenized securities model but leaves room for alternative approaches outside its framework.
Why it matters
The NYSE and Blockchain.com partnership marks a significant shift in the evolution of financial markets, where traditional and crypto technologies increasingly converge. Expanding access to tokenized stocks represents a move towards more democratic and innovative investment opportunities, enabling retail investors to benefit from 24/7 and even weekend trading with the convenience of instant settlement. Meanwhile, the SEC’s introduction of the Innovation Exemption provides important regulatory clarity for tokenized securities development and fosters competition to balance ownership rights and accessibility. This event signals a new stage in the digitization of financial assets and reflects efforts by major players to strengthen their presence in this rapidly growing market.
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