Binance is considering bringing back tokenized stock trading on its platform, revisiting a product it shut down in 2021 amid regulatory pressure. The renewed interest reflects a broader push across the crypto and traditional finance industries to merge blockchain technology with real-world assets, particularly publicly traded equities.
Tokenized stocks are digital representations of shares in public companies such as Apple, Microsoft, or Tesla. These blockchain-based assets allow investors to gain fractional exposure to stocks without owning the underlying shares directly, while tracking real-time market prices. Settlement and custody are handled onchain, offering potential benefits such as faster settlement, increased accessibility, and global reach.
A Binance spokesperson told CoinDesk that the exchange remains focused on bridging traditional finance and crypto while maintaining regulatory compliance. Since last year, Binance has expanded support for tokenized real-world assets and recently launched regulated traditional finance perpetual contracts settled in stablecoins. According to the spokesperson, exploring tokenized equities is a natural progression as Binance continues to build infrastructure, partner with traditional institutions, and develop new financial products for users.
This would not be Binance’s first attempt at stock tokens. In April 2021, the exchange launched tokenized versions of Tesla, Coinbase, Microsoft, Apple, and other stocks. However, regulators in the U.K. and Germany raised concerns about whether the products violated securities laws, leading Binance to discontinue the service just months later.
Despite those setbacks, interest in tokenized equities has only intensified. Crypto exchanges like OKX are evaluating similar offerings, while major U.S. financial institutions, including the New York Stock Exchange and Nasdaq, are seeking regulatory approval for stock token products. Coinbase is also exploring ways to bring equities onchain.
Regulatory uncertainty remains a key obstacle. Tokenized stocks were among the unresolved topics in recent U.S. crypto market structure legislation, which industry leaders argue could slow innovation. Coinbase CEO Brian Armstrong has criticized existing proposals, urging regulators to allow exemptions for certain tokenized securities.
As global demand for blockchain-based financial products grows, Binance’s potential return to tokenized stock trading highlights the ongoing convergence of crypto and traditional markets.
