NYSE is assembling the pipes for a $5.5 trillion tokenized asset market

NYSE is adding Blockchain.com as a prospective gateway to its planned round-the-clock market for tokenized US stocks.

Blockchain.com and NYSE Group signed a memorandum of understanding that could give the crypto platform’s users access to US-listed shares and exchange-traded funds on NYSE’s planned digital trading venue, subject to regulatory approval, the companies said Sept. 23. The agreement also establishes a two-way market-data relationship spanning stocks and crypto.

The deal gives NYSE another potential distribution channel into a crypto-native customer base before its tokenized securities market opens. Blockchain.com says it has more than 44 million confirmed accounts and already distributes tokenized US equities through a separate partnership with Ondo Finance.

NYSE unveiled its digital platform in January with plans for 24-hour trading of tokenized US shares and ETFs, fractional orders, immediate on-chain settlement and stablecoin-based funding. The venue would support tokenized versions of traditionally issued securities alongside assets issued directly in digital form, while preserving shareholder rights such as dividends and voting.

The push comes as Wall Street firms position for a potentially much larger market in blockchain-represented assets. Citi Institute estimates tokenized financial assets could reach $5.5 trillion by 2030 in its base case, from about $17 billion currently, with public equities and Treasuries expected to drive much of the expansion. Its bull case reaches $8.2 trillion.

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Citi estimates that if 10% of US retail investors adopt on-chain products by the end of the decade, demand for tokenized public equities alone could reach about $2.6 trillion. Around-the-clock access, fractional ownership, and faster settlement are among the features expected to draw digitally native investors toward the market.

For NYSE, capturing that demand requires more than building the exchange infrastructure. It also requires reaching investors already accustomed to moving assets on blockchain rails.

NYSE builds crypto distribution before venue launch

Blockchain.com is the latest crypto platform being positioned as a front end for NYSE’s tokenization push.