NYSE taps Blockchain.com to reach crypto investors with tokenized stocks

The New York Stock Exchange has secured a distribution channel for its planned digital trading venue by signing a memorandum of understanding with crypto exchange Blockchain.com. The firms announced the deal Wednesday, which would allow Blockchain.com users to trade tokenized U.S. stocks and ETFs through the NYSE platform, provided the venue launches and receives necessary regulatory approvals.

Blockchain.com intends to integrate these Wall Street assets into its application, enabling round-the-clock access. The NYSE, owned by Intercontinental Exchange, is developing this venue as a digital alternative trading system, or ATS. This regulated marketplace operates outside traditional exchanges and offers 24/7 trading with instant on-chain settlement. Tokenized stocks are blockchain-based representations of listed company shares that proponents say enable fractional ownership and faster settlement.

The partnership gives the NYSE direct access to crypto-native investors. Blockchain.com states it maintains over 44 million verified accounts in more than 70 jurisdictions. Peter Smith, CEO and co-founder of Blockchain.com, argued that residency and brokerage access should not restrict stock ownership.

The agreement also includes data components. ICE Data Services plans to share Blockchain.com's crypto market data with subscribers, while Blockchain.com will incorporate specific NYSE and ICE feeds into its app.

The deal aligns with recent shifts in Washington. Last week, the SEC introduced an "innovation exemption" permitting qualifying venues to trade tokenized U.S. stocks on public blockchains without registering as exchanges. This followed the stalling of the Clarity Act in the Senate, a bill that would have codified such crypto activities.

Blockchain.com, which filed confidentially for a U.S. IPO in May, faces rising competition. Coinbase launched tokenized stocks on its Base network for non-U.S. users in August, and other crypto venues are moving to offer similar products to global users. Neither company disclosed a launch date or financial terms for the partnership.