NYSE and Blockchain.com are discussing the tokenization of stocks

The New York Stock Exchange and crypto broker Blockchain.com are exploring the possibility of tokenizing stocks and ETFs in the US. The companies have begun collaborating toward this goal.

Tokenization on the blockchain means creating a token whose value is tied to the price of a specific stock or other asset. Blockchain.com already has similar products in Europe, though the companies have not yet specified where the new tokens will become available.

The agreement also includes data sharing. NYSE owner Intercontinental Exchange will distribute Blockchain.com's crypto market data, while the crypto broker will use NYSE information in its own app.

Such tokens allow users to trade stocks outside standard trading hours, though their holders often do not receive the usual rights of shareholders. The US Securities and Exchange Commission recently approved a five-year exemption that makes it easier for qualifying platforms to offer tokenized securities.

Source: Reuters