Blockchain.com and NYSE explore tokenized stocks for crypto users

Blockchain.com and the New York Stock Exchange have signed an agreement to explore offering tokenized US stocks and exchange-traded funds to Blockchain.com users. The plan would connect the crypto platform’s customers to NYSE’s planned digital trading system, subject to regulatory approval, according to Blockchain.com’s announcement on Sept. 23.

What would Blockchain.com users be able to access?

The agreement sets out a plan to distribute tokens representing US stocks and ETFs listed on the NYSE. Tokenized securities are digital tokens that represent traditional financial assets. The companies say the proposed access could support trading around the clock, rather than only during standard market hours.

The agreement does not say which countries would be included, when the service might launch or which stocks and funds would be available. Reuters reported that the companies had not announced where the products would be sold. The planned access would run through the NYSE’s previously announced digital alternative trading system, or ATS.

What else does the agreement cover?

The memorandum of understanding also sets out a two-way exchange of market data. NYSE affiliate ICE Data Services plans to distribute Blockchain.com’s crypto market data and analytics to its subscribers. Blockchain.com plans to add some ICE and NYSE data feeds to its app, giving more than 44 million confirmed accounts access to real-time stock information, the company said.

The data arrangement could bring crypto market information to traditional finance clients while adding stock data to a crypto platform. Blockchain.com said one place the stock data may appear is its AI assistant, June. The announcement did not give a date for either data change.

When could the stock tokens become available?

There is no launch date in the agreement. The access depends on any required regulatory approvals, and the companies describe the work as an exploration of how to distribute the tokens. The announcement does not give details on trading rules, fees or what rights token holders would have.

That last point matters because tokenized stock products do not always give buyers the same rights as owning shares directly. Reuters noted that buyers of blockchain-based stock tokens typically do not become shareholders in the underlying company. Blockchain.com has already offered tokenized stocks to customers in Europe, Reuters reported, but the new agreement concerns access through NYSE’s planned platform.