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.
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Blockchain.com and NYSE announced a "strategic collaboration" to explore selling tokens representing NYSE-listed stocks and ETFs on blockchain, the technology behind cryptocurrencies.
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The companies have not yet announced which countries the products will be sold in.
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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.
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"It’s a bet by both parties on where capital markets are heading," Blockchain.com said.
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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.
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Proponents say they enable more people to buy stocks and trade them outside of standard market hours.
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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.
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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
Source: Reuters