The New York Stock Exchange (NYSE) has signed a memorandum of understanding (MoU) with digital wallet provider Blockchain.com to distribute tokenized US stocks and exchange-traded funds (ETFs). The agreement establishes a direct distribution channel, bringing traditional stock market instruments into Blockchain.com users’ portfolios.
According to data from RWA.xyz, global tokenized stocks recorded $3.14 billion in distribution value as of Wednesday. The tokenized equity market grew by more than 18% in the past month alone.
This double-digit 30-day growth explains why a traditional exchange of NYSE’s stature is moving to link its infrastructure with crypto applications.
Data Sharing Ahead of Regulatory Approval
The distribution of tokenized stocks and ETFs will eventually be executed through an alternative digital trading platform developed by the NYSE. Because the distribution system for these new investment instruments is still pending regulatory approval, the two companies cannot yet begin public sales.
While awaiting operational clearance, the NYSE and Blockchain.com agreed to activate a pricing data exchange channel. ICE Data Services will supply crypto market data from Blockchain.com to its clients, while Blockchain.com secures the rights to embed trading data feeds from ICE and the NYSE main board into its application.
Traditional Clients Getting Connected
Kraken, Nasdaq, Binance, Coinbase, and Robinhood are following this trend by developing their own tokenized stock models to capture trading volume from Web3 users.
Digital asset access is also expanding across Europe through Raiffeisen Bank International. The Austrian financial institution has expanded its group crypto partnership with infrastructure provider Bitpanda Enterprise.
The expanded Raiffeisen collaboration aims to roll out trading facilities to 11 new markets across Central and Eastern Europe. The Bitpanda service expansion brings crypto investment products directly to roughly 18 million of the bank’s customers.
For retail investors, the barrier between Wall Street capital markets and cryptocurrencies is gradually dissolving. Once all approvals from securities regulators are secured, consumers’ primary consideration will simply come down to which app offers the smoothest experience swapping stocks for coins in the middle of the night.
Reported by Cointelegraph.
Read also: What Is DeFi (Decentralized Finance)?
Read also: MoonPay Pays $60M to Acquire North Capital - Aims for SEC License to Trade Tokenized Stocks
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
