Binance confirms tokenized equities plans five years after initial push

Binance, the world’s largest cryptocurrency exchange by trading volume, has officially confirmed its intentions to revive its tokenized equities offerings, a strategic push that comes approximately five years after its initial program was shelved due to global regulatory pressures. The original Binance Stock Tokens, initially launched in 2021 in partnership with CM-Equity, allowed users to trade fractional shares of publicly listed companies such as Tesla and Apple using zero-commission, regulated digital tokens.

The initial rollout, however, faced immediate and severe regulatory hurdles, particularly from jurisdictions like Germany’s BaFin and regulators in the United Kingdom, who questioned whether the tokens constituted unregulated securities. This intense global scrutiny forced Binance to abruptly cease the offering globally in July 2021, redirecting the exchange to focus primarily on spot and derivatives trading of core cryptocurrencies.

The resurgence of tokenized equities at Binance signals a maturing approach to compliance and jurisdiction. While specific launch details and regulatory partnerships for the new program are yet to be fully disclosed, the confirmation underscores a broader industry trend toward integrating Real-World Assets (RWAs) onto the blockchain. By leveraging digital ledger technology (DLT), Binance aims to provide greater accessibility, lower settlement times, and enhanced transparency for trading traditional stocks. Analysts suggest the new initiative will likely be housed under a specific, licensed entity within the Binance group and will target jurisdictions where regulatory clarity regarding digital securities has been established, thereby mitigating the compliance risks that plagued its earlier attempt to bridge the gap between traditional finance and the crypto ecosystem.

Source: Binance confirms tokenized equities plans five years after initial push