NYSE Taps Blockchain.com to Reach Crypto Investors With Tokenized Stocks

The New York Stock Exchange (NYSE) and blockchain platform Blockchain.com have formed a partnership to provide Blockchain.com users with access to tokenized stocks through NYSE's upcoming digital trading platform. The partnership, pending regulatory approval, could grant millions of crypto users access to tokenized U.S. stocks and exchange-traded funds.

This move further expands the rapidly growing market for tokenized financial assets, which offer potential benefits like 24/7 trading, blockchain-based settlement, fractional ownership, and broader market access.

Blockchain.com CEO Peter Smith highlighted the significance of tokenized stocks in transforming the financial landscape and promoting economic freedom. The companies will collaborate by sharing market data; ICE Data Services, part of NYSE's parent company Intercontinental Exchange (NYSE: $ICE), will supply Blockchain.com's crypto market data and analytics to its clients. In return, Blockchain.com will incorporate certain NYSE and ICE data feeds into its app, which boasts over 44 million verified accounts.

The collaboration occurs amid expanding interest from financial institutions in tokenization. Citi (NYSE: $C) has predicted that the market for tokenized assets could reach $5.5 trillion by 2030. However, it's important to note that tokenized stocks may differ from traditional shares, as buyers of blockchain-based stock tokens often do not possess the same shareholder rights held by those who directly own underlying securities.

The U.S. Securities and Exchange Commission (SEC) recently introduced a five-year exemption, permitting specific platforms to offer tokenized versions of stocks and other securities without adhering to certain rules applicable to conventional exchanges.