NYSE, Blockchain.com in tie-up to bring tokenized US stocks to crypto users

Blockchain.com and the New York Stock Exchange have agreed to explore a distribution relationship that would make tokenized US-listed stocks and exchange-traded funds available to Blockchain.com’s customers via the NYSE’s planned digital alternative trading system (ATS). The memorandum of understanding contemplates Blockchain.com distributing tokenized equities and ETFs that are traded on the NYSE’s digital venue, but any actual roll-out would require regulatory sign-off.

The partnership also includes a reciprocal market data arrangement. ICE Data Services, an affiliate of the NYSE, intends to distribute Blockchain.com’s crypto market data and analytics to its client base, while Blockchain.com would incorporate selected ICE and NYSE data feeds into its platform. The firms presented the deal as a way to extend the NYSE’s tokenized securities offering to Blockchain.com’s global users.

Market participants cited in reporting view the NYSE’s planned ATS as focused on retail trading. Reid Noch, vice president of US equity market structure at TD Securities, said the venue’s planned features — around-the-clock trading and request-for-quote functionality — make it especially oriented toward retail flows and weekend trading. Analysts have noted that 24/7 settlement could have limited operational friction for retail trades, which are typically pre-funded, while true weekend access could matter for episodic events that occur outside traditional market hours.

The move is part of a broader industry trend in which crypto platforms and traditional exchanges are expanding tokenized asset offerings. Firms including Kraken, Binance, Coinbase and Robinhood have introduced various tokenized-equity products or models, and commentary from Talos highlighted trade-offs across tokenization approaches between ownership rights and accessibility. Separately, data from RWA.xyz show the tokenized stock market has been growing: distributed value reached $3.14 billion, up more than 18% over the prior 30 days, and the number of holders rose nearly 72% to 3.87 million.

Regulatory developments are evolving alongside these commercial plans. Less than a week before the announcement, the U.S. Securities and Exchange Commission unveiled a five-year "Innovation Exemption" for certain tokenized securities venues, allowing eligible platforms to use permissioned automated market maker liquidity pools without being treated as exchanges under the Exchange Act, provided tokenized shares carry the same rights as their traditional counterparts. That framework excludes some current products that do not convey equivalent shareholder rights — for example, Kraken’s xStocks and Robinhood’s Stock Tokens in their current forms — while leaving open the possibility of other models outside the exemption, according to SEC commentary.