The new digital asset firm, which plans to offer a service for traders to purchase and sell securities, will have offices in New York, Chicago and the Wall Street area, according to a person familiar with the deal.
The firm is a joint venture between New York-based blockchain technology company Blockstream, which developed the Bitcoin blockchain, and Coinbase, which manages the trading of Bitcoin.
The people said the company will not be able to take part in the stock exchange but will offer an option to buy shares in its own trading platform.
Coinbase will operate its own website and offer trading platforms for trading Bitcoin, Litecoin and Ethereum.
Blockstream and Coinbase did not immediately respond to requests for comment.
Bitcoin, one of the most popular cryptocurrencies on the market, has seen its value soar in recent months amid a surge in its value, which has surged over 600% since the start of the year.
On Wednesday, the Bitcoin price surpassed $1,000 for the first time, with a bid of $1.0931.
Blockstream is working with the Financial Services Regulatory Authority to introduce new trading platforms that will allow users to buy and sell stocks and ETFs.
Currently, most trading platforms are limited to trading cryptocurrencies, and some do not have a physical presence.
In recent weeks, Wall Street firms have begun using cryptocurrency exchanges to buy stock or sell bitcoin.
Some of the largest financial institutions have started to buy up bitcoin and its peers on their platforms.
Last month, UBS AG , Goldman Sachs Group Inc. and U.S. Capital Group Holdings LLC announced plans to acquire bitcoin company Coinbase Inc. as part of an expansion of their bitcoin-focused digital asset exchange.
Earlier this month, a group of U.K. and Chinese banks agreed to buy bitcoin trading platform Bitfinex, with the U.KS.
Treasury buying shares worth up to £1 million.
Cryptocurrencies are digital assets, which are digital files that are not backed by a physical physical commodity like gold or silver, making them more vulnerable to hacking, fraud or cyberattacks.