Binance Explores Tokenized Stock Trading Return

Binance, the world's largest cryptocurrency exchange, has confirmed it is exploring the reintroduction of tokenized stock trading on its platform, marking a return to the service it discontinued in 2021 amid regulatory scrutiny. The move, aimed at non-U.S. users, comes as crypto markets face declining trading volumes and platforms seek new revenue through real-world assets.

Tokenized stocks are digital representations of shares in publicly traded companies, such as Tesla, Apple, and Microsoft, that mirror the real-time price movements of underlying assets on blockchain networks. They enable fractional ownership and 24-hour trading, often backed by custodians or derivatives rather than direct stock holdings. A Binance spokesperson described the initiative as "a natural next step for bridging traditional finance and crypto," emphasizing the exchange's commitment to expanding user options while adhering to regulatory standards.

The exchange first launched stock tokens in April 2021, starting with Tesla and expanding to include Coinbase, MicroStrategy, Apple, and Microsoft. Issued through a German broker and traded on Binance, the products operated for only three months. Regulators,...