The New York Stock Exchange and Blockchain.com have signed a memorandum of understanding to give Blockchain.com users access to tokenized US-listed stocks and exchange-traded funds through NYSE's planned digital alternative trading system (ATS).
Under the proposed arrangement, Blockchain.com would distribute tokenized US equities and ETFs traded on NYSE's digital platform, pending regulatory approval. The partnership would extend NYSE's tokenized securities offering to Blockchain.com's global customer base.
The agreement also includes an exchange of market data. NYSE affiliate ICE Data Services plans to distribute Blockchain.com's crypto market data and analytics to its clients, while Blockchain.com would integrate certain ICE and NYSE market data feeds into its platform.
24/7 Trading and Settlement Benefits
Reid Noch, vice president of US equity market structure at TD Securities, told Cointelegraph that NYSE's planned tokenized ATS targets retail investors, pointing to its planned 24/7 trading and request-for-quote functionality. Because retail trades are already pre-funded, the shift to instant settlement would require minimal changes to existing retail workflows.
Noch highlighted that true weekend trading could be the most significant differentiator, potentially benefiting retail-heavy stocks or trading around episodic news events.
Broader Industry Shift Toward Tokenized Assets
Tanay Ved, senior research associate at institutional digital asset technology firm Talos, noted that crypto venues are becoming multi-asset platforms while traditional assets adopt the 24/7, programmable structure that crypto pioneered.
Major exchanges are advancing different tokenization models. Kraken offers xStocks and has partnered with Nasdaq on a separate tokenized equity model, while Binance, Coinbase, and Robinhood have rolled out their own approaches to bringing equities onchain.
Ved noted that different tokenization approaches involve trade-offs between ownership and accessibility, with models ranging from issuer-native equity to custodial exposure to pure derivatives. Which model succeeds remains unclear as adoption remains in early stages.
Rapid Market Growth
The tokenized stock market has expanded significantly. Distributed value reached $3.14 billion as of Wednesday, up more than 18% over the past 30 days, while the number of holders climbed nearly 72% to 3.87 million, according to RWA.xyz data.
SEC Regulatory Framework
The partnership arrives less than a week after the US Securities and Exchange Commission introduced a five-year Innovation Exemption for certain tokenized securities venues. Under the exemption, eligible venues can use permissioned automated market maker liquidity pools to facilitate trading without being treated as exchanges under the Exchange Act, provided that tokenized stocks carry the same rights and privileges as equivalent traditional shares.
Some existing products do not qualify for the exemption in their current form, including Kraken's xStocks and Robinhood's Stock Tokens, which provide exposure to underlying equities but do not grant holders the same rights as conventional shareholders. SEC Commissioner Hester Peirce has indicated that while the exemption covers one specific tokenized securities model, other approaches outside this framework remain possible.
