NYSE Group and crypto platform Blockchain.com have announced a strategic collaboration to explore distributing tokenized versions of U.S.-listed stocks and exchange-traded funds.
Reuters reported that the companies will examine the sale and distribution of blockchain-based tokens representing NYSE-listed equities and ETFs. Their announcement says the collaboration could give Blockchain.com users access to the NYSE’s previously announced digital trading venue.
Tokenization uses blockchain-based digital tokens to represent traditional financial assets. Supporters say it could enable broader distribution and longer trading hours, while the model also raises regulatory, ownership and investor-protection questions.
The project remains at the exploration and planning stage. The companies have not announced which countries would receive the products, and any actual launch would remain subject to the necessary regulatory approvals.