(Corrects to say Blockchain.com is a brokerage not an exchange, in first paragraph and third bullet point)
By Elizabeth Howcroft
Sept 23 (Reuters) – The New York Stock Exchange and crypto brokerage 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 brokerage 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.
(Reporting by Elizabeth Howcroft in Paris, Editing by Louise Heavens)
