Tokenized stocks: NYSE opens its doors to 44 million crypto accounts

Wall Street extends an olive branch. Six days ago, the SEC gave the green light to on-chain tokenized stock trading. Now, the New York Stock Exchange is gaining a new crypto gateway: the NYSE and Blockchain.com signed a memorandum of understanding on Wednesday, September 23.

The goal is to offer tokenized versions of U.S. stocks and ETFs to the platform's more than 44 million crypto users.

On paper, the mechanism is straightforward. In practice, Blockchain.com users could purchase tokenized versions of U.S.-listed securities. Each digital token represents a real share, with orders routed through the NYSE's upcoming digital trading platform. It functions as an Alternative Trading System (ATS)—a regulatory framework lighter than a traditional stock exchange, yet supervised by the SEC.

The agreement also covers data sharing. ICE Data Services will sell Blockchain.com’s crypto data and analytics to its subscribers. This subsidiary is owned by the Intercontinental Exchange, the parent company of the NYSE. In return, the Blockchain.com app will display real-time price feeds from certain NYSE and ICE streams. However, the memorandum of understanding remains non-binding; every step is contingent upon regulatory approval, the joint statement clarifies.

“People shouldn’t be limited in their ability to own stocks based on where they live,” argues Peter Smith. As the co-founder and CEO of Blockchain.com, he highlights a user base spanning over 70 jurisdictions, offering the NYSE a valuable storefront outside the United States.

Tokenized stocks: Wall Street aims for 24/7 trading

The project is not coming out of nowhere. In January, the NYSE unveiled its tokenized securities platform, according to an ICE announcement. The platform combines its Pillar matching engine with blockchain-based settlement. The roadmap includes 24/7 trading and the ability to place orders based on dollar amounts rather than share counts. Funding via stablecoins may also be on the table. Additionally, an initial protocol with Securitize was established in March to help build the infrastructure.

Since then, the regulatory timeline has accelerated. On September 17, the SEC granted a five-year exemption to permissioned on-chain platforms, allowing them to trade tokenized stocks via Automated Market Makers (AMMs). The only condition: every token must carry the same rights as the underlying stock, including dividends and voting rights.

The race is on. Competitor Nasdaq has already invested in Kraken to help bring continuous trading to Wall Street.

The NYSE vs. crypto platforms: who is distributing what?

Consider the shift in dynamics. For years, crypto platforms have offered tokenized stocks outside the U.S., often relying on intermediary structures to hold the actual securities. Major U.S. exchanges once viewed this phenomenon from a distance. Now, they are taking control of the creation process. In turn, they are leaving the distribution to crypto players who serve a global, younger, and "always-on" clientele accustomed to weekend trading.

Nevertheless, a memorandum of understanding remains a statement of intent. No launch date has been announced, and the NYSE’s digital platform is still awaiting its own regulatory clearances.

This isn't ICE’s first foray into the crypto world. Announced in June, its joint venture with OKX was designed to provide platform users with access to ICE futures contracts, which also includes NYSE-tokenized stocks. With Blockchain.com, the NYSE parent company now secures two major entry points to tens of millions of crypto accounts.

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