Blockchain.com and the NYSE have taken a significant step towards enabling around-the-clock trading of tokenized securities. In a memorandum of understanding signed on September 23, the two companies outlined a distribution plan that could potentially grant Blockchain.com users access to tokenized U.S. exchange-listed equities and ETFs through the NYSE’s digital ATS, pending regulatory approvals.
This collaboration is specifically aimed at Blockchain.com’s global customer base, which is deeply rooted in the crypto industry. Tokenized securities offer benefits such as fractional ownership, 24/7 trading availability independent of traditional market hours, global investor access, and faster onchain settlement.
The timing of this initiative is noteworthy, especially considering Citi Institute’s projection of a $5.5 trillion market for tokenized assets by 2030. The adoption of tokenized securities has been gaining momentum in recent years, making this partnership even more significant. However, it is important to note that the proposed access to tokenized securities is contingent on regulatory approvals.
In addition to tokenized securities, the MOU also covers bidirectional market-data distribution between the two companies. ICE Data Services intends to distribute Blockchain.com’s crypto market data and analytics to its clients, potentially providing traditional investors with more insights into digital assets.
Blockchain.com plans to integrate certain ICE and NYSE exchange data feeds into its app, offering its vast user base real-time stock information. With over 95 million wallets, 44 million confirmed accounts, and more than $1.1 trillion in crypto transactions facilitated since its inception in 2011, Blockchain.com’s scale adds a unique dimension to this partnership.
The collaboration between Blockchain.com and the NYSE is not just about tokenizing stocks but also about merging traditional exchange data with a global crypto platform. This test will determine whether tokenized securities can broaden market access beyond conventional trading hours.
Moving forward, the next step for Blockchain.com and the NYSE is to transform the proposed tokenized securities distribution plan into an approved product that can operate globally 24/7. This partnership has the potential to revolutionize the way securities are traded and accessed, bringing together the worlds of traditional finance and crypto in a seamless manner.