NYSE and Blockchain.com to explore selling tokenised stocks

Sept 23 : The New York Stock Exchange and crypto exchange Blockchain.com will together explore creating crypto versions of US-listed stocks, Blockchain.com said in a press release on Wednesday.

The partnership is the latest example of a mainstream stock exchange looking to cash in on tokenisation, which is the idea of creating blockchain-based tokens which represent or are pegged to assets such as stocks and bonds.

• Blockchain.com and NYSE announced a "strategic collaboration" to explore selling tokens representing NYSE-listed stocks and ETFs on blockchain, the technology behind cryptocurrencies.

• The companies have not yet announced which countries the products will be sold in.

• The companies also signed a data agreement, with NYSE's parent company Intercontinental Exchange distributing Blockchain.com's crypto market data and analytics, while the crypto exchange will use NYSE data in its app.

• "It’s a bet by both parties on where capital markets are heading," Blockchain.com said.

• Blockchain-based stock tokens rarely offer buyers the same rights as traditional equities, and the buyer typically does not become a shareholder in the underlying company, raising concerns about investor protection.

• Proponents say they enable more people to buy stocks and trade them outside of standard market hours.

• Blockchain.com, based in London and Dallas, has already started selling tokenised stocks to customers in Europe, but a spokesperson for the company declined to comment on how many customers had bought them.

• The US Securities and Exchange Commission unveiled an exemption that will allow platforms to sell blockchain-based versions of stocks and other securities, without having to follow many of the rules that apply to stock exchanges.