Financial firms expand into tokenized US securities market

Financial institutions are expanding their presence in the tokenized securities market following new regulatory developments in the United States. The New York Stock Exchange (NYSE) and Blockchain.com have signed a memorandum of understanding to explore a system allowing investors to access tokenized versions of US-listed stocks and exchange-traded funds (ETFs). This potential arrangement would utilize NYSE’s planned digital trading platform and involve deeper integration of market data between the two entities.

This move follows the Securities and Exchange Commission (SEC) creating a new regulatory pathway for blockchain-based stock trading. Specifically, a recent “Innovation Exemption” allows certain venues to facilitate trading in tokenized National Market System stocks under specific conditions and limits.

In a separate move within the sector, MoonPay has acquired Utah-based North Capital Investment Technology in an all-stock deal reportedly valued at over $60 million. MoonPay intends to use North Capital’s back-end brokerage services and SEC licenses—which include broker-dealer transactions and alternative trading system (ATS) trading—to build infrastructure for the mass adoption of tokenized real-world assets.