Binance Leads Push To Offer Tokenized US Stocks Outside Traditional Markets
Binance just threw a grenade into the traditional finance sandbox—and Wall Street is watching the fuse burn.
Your Brokerage Just Got a Digital Twin
Forget waiting for market hours or navigating archaic settlement systems. Tokenized stocks slice ownership into digital fragments that trade 24/7 on blockchain rails. It’s fractional investing on financial steroids—own a piece of Apple or Tesla without the legacy brokerage baggage.
Why This Cuts Deeper Than a Gimmick
This isn’t just a new product listing. It’s a direct bypass of the entire traditional market infrastructure. No more T+2 settlement delays. No more exclusive access for the institutional elite. The playbook is simple: digitize, democratize, disrupt.
Regulators are already circling, of course. The SEC’s long-standing grip on securities definition faces its most tangible crypto challenge yet. Meanwhile, traditional finance veterans scoff—until they check the user growth numbers.
The Global Game Just Changed
For international investors, this is a seismic shift. Tokenized stocks erase geographic barriers and currency hurdles in one move. Want exposure to the S&P 500 from Jakarta or Lagos? The gateway just went from ‘heavily restricted’ to ‘click to confirm.’
It’s the ultimate irony: crypto’s most rebellious sector now offers the cleanest path to own the most mainstream assets. Talk about hedging your bets.
The Bottom Line
Binance isn’t just adding a feature—it’s testing the foundational premise of public market exclusivity. If this scales, the line between ‘traditional’ and ‘crypto’ asset blurs into irrelevance. The old guard will call it reckless; the new wave will call it inevitable. Either way, the market’s tectonic plates are shifting. And as any good trader knows, you can either ride the momentum or get buried by it. After all, what’s more ‘disruptive’ than turning Wall Street’s crown jewels into permissionless digital tokens? The bankers must be thrilled.
Binance And OKX Explore Tokenized Stocks
The report says Binance is considering reintroducing stock tokens to its platform, several years after pulling similar products in 2021 amid regulatory uncertainty.
The plan, cited by a person familiar with the matter, reflects a broader shift within the industry as exchanges revisit tokenized equities under evolving market and compliance frameworks.
OKX is also said to be evaluating the possibility of offering tokenized stocks, according to Haider Rafique, the company’s global managing partner and chief marketing officer.
Binance has framed the MOVE as part of its long-term strategy to connect traditional finance with the crypto ecosystem. In a statement to CoinDesk, a Binance spokesperson said the exchange is focused on expanding user choice while maintaining strict regulatory standards.
The company noted that it began supporting tokenized real-world assets (RWAs) last year and recently launched what it described as the first regulated traditional finance perpetual contracts settled in stablecoins.
Exploring tokenized equities, the spokesperson said, is a natural progression as Binance continues to build infrastructure, collaborate with established financial institutions, and develop new products for users and the wider industry.
Binance and OKX are not alone in this effort. Several major crypto firms, including Robinhood (HOOD), Gemini (GEMI), and Kraken, have already rolled out tokenized stock offerings in Europe. Meanwhile, Robinhood and blockchain startup Dinari are seeking regulatory approval to introduce similar products in the United States.
Tokenized Shares Gain Increased Interest
Robinhood took a significant step in June of last year when it launched trading in tokens linked to publicly listed companies and announced plans to expand into tokenized shares of private firms.
As part of the rollout, the company distributed tokens pegged to OpenAI. According to Robinhood’s terms and conditions, those tokens function as derivative contracts backed by the firm’s ownership of fund units in a special-purpose vehicle that holds OpenAI convertible notes.
Coinbase (COIN), on the other hand, is reportedly in discussions with the US Securities and Exchange Commission (SEC) about launching tokenized securities that WOULD grant investors the same legal rights and benefits as conventional shares.
Several issuers involved in the space say they are closely adhering to established rules around securities law, anti-money laundering requirements, bankruptcy protections, and investor safeguards.
Industry leaders argue that, when structured properly, tokenization can strengthen rather than weaken investor protections. Ian De Bode, chief strategy officer at Ondo Finance, said that a careful approach to tokenized securities can enhance safeguards while unlocking efficiencies that traditional markets struggle to achieve.
Featured image from OpenArt, chart from TradingView.com