NYSE Partners With Blockchain.com to Distribute Tokenized Stocks and ETFs
Tokenized stock race is going overdrive. NYSE partners with Blockchain.com to distribute tokenized stocks and ETFs from its upcoming digital securities venue.
Under the memorandum of understanding, Blockchain.com users could gain access to tokenized U.S. exchange-listed equities and ETFs through NYSE’s planned digital alternative trading system (ATS), subject to regulatory approval.
The partnership also extends beyond distribution.
NYSE affiliate ICE Data Services plans to distribute Blockchain.com crypto market data and analytics to its institutional clients, while Blockchain.com plans to integrate certain ICE and NYSE market data feeds into its app.
➡️ Why this matters
As I argued in my Strategic Edge note "Nasdaq vs NYSE vs LSEG: Tokenized Stock Strategies Compared", Nasdaq and NYSE are both laying the groundwork to become key infrastructure players in a potential structural shift in U.S. equity markets toward tokenization.
One increasingly important battleground is distribution.
Nasdaq already has a distribution relationship with crypto exchange powerhouse Crypto.com, giving it potential access to a platform with more than 140 million users and significant global trading activity.
Until now, NYSE did not have an equivalent crypto-native distribution partner in its arsenal.
The Blockchain.com partnership starts to address that gap. Blockchain.com reports 43 million+ verified customers. Its exchange trading volumes are considerably smaller than Crypto.com's, so the two partnerships are not equivalent from a liquidity or active-trader perspective.
But the strategic direction is important.
NYSE appears to recognize that building the regulated market infrastructure for tokenized equities is only one part of the equation. Distribution is the other.
➡️ The emerging competition is increasingly about which incumbent exchange can assemble the strongest combination of:
1️⃣ regulated infrastructure
2️⃣ tokenization rails
3️⃣ liquidity
4️⃣ crypto-native distribution
And that could determine where tokenized U.S. equity liquidity ultimately concentrates.
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