Wall Street is reaching out. Six days ago, the SEC gave the green light to tokenized stocks traded on-chain. Now, the New York Stock Exchange has a new crypto distributor. Indeed, the New York Stock Exchange and Blockchain.com signed a memorandum of understanding on Wednesday, September 23.
The objective is to offer American stocks and ETFs in a tokenized version to clients of the crypto platform. But there are more than 44 million of them.
NYSE and Blockchain.com: what the agreement provides
On paper, the mechanism is simple. Concretely, Blockchain.com users could buy tokenized versions of securities listed in the United States. These digital tokens each represent a real action. Orders would then go through the NYSE's future digital trading platform. This is an alternative trading system (ATS), that is to say a lighter framework than a stock exchange, supervised by the SEC.
The agreement also provides for an exchange of data. On the one hand, ICE Data Services will sell Blockchain.com crypto data and analyzes to its subscribers. This subsidiary is owned by the Intercontinental Exchange, which owns the NYSE. In return, the Blockchain.com application will display real-time prices of certain NYSE and ICE feeds. However, the memorandum of understanding remains non-binding. Each step depends on the agreement of regulators, specifies the joint press release.
âPeople should not be limited in holding stocks based on where they live,â argues Peter Smith. The co-founder and boss of Blockchain.com also has clients in more than 70 jurisdictions. The NYSE therefore gains a showcase outside the United States.
Tokenized stocks: Wall Street wants to trade 24 hours a day
The project does not come out of nowhere. In January, the NYSE presented its tokenized securities platform, according to the ICE announcement. This combines its Pillar matching engine with blockchain settlement. On the program: trading 24/7, or orders denominated in dollars rather than in number of shares. Financing in stablecoins would also be possible. Furthermore, in March, a first protocol with Securitize was to help build the tool.
Since then, the regulatory timetable has accelerated. On September 17, the SEC granted a five-year exemption to controlled access on-chain platforms. These can now trade tokenized shares via automated market makers (AMM). Only condition: each token must give the same rights as the classic share, dividends and voting rights included.
So the race is on. Its competitor Nasdaq has already invested in Kraken to open up Wall Street continuously.
The NYSE versus crypto platforms: who distributes whom?
See the reversal. For years, crypto platforms have offered tokenized stocks outside the United States. They often relied on an intermediary structure which held the titles. The major American stock exchanges then watched the phenomenon from afar. From now on, they are taking back control of manufacturing. On the other hand, they leave it to crypto players to distribute to a global clientele, young and used to trading on weekends.
However, a memorandum of understanding remains a statement of intent. No launch date has been communicated. In addition, the NYSE digital platform is still awaiting its own authorizations.
