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Binance confirms plan to relaunch tokenized equities
Cryptocurrency exchange Binance has confirmed it is exploring a return to tokenized equities, signaling renewed interest in stock-linked digital assets for the first time since its 2021 halt. The move underscores Binance's intent to bridge traditional finance and crypto by offering regulated, digital versions of company shares, though any relaunch would depend on meeting strict compliance and regulatory requirements.
Why tokenized equities matter
Tokenized equities—also called tokenized stocks or stock tokens—convert ownership or exposure to traditional shares into blockchain-based digital tokens. These instruments aim to increase liquidity, enable fractional ownership, and expand market access for retail and institutional investors across borders. For exchanges, tokenized stocks can diversify product lines, pairing familiar TradFi assets with crypto-native settlement rails such as stablecoins.
Background: Binance’s 2021 offering and pullback
In April 2021, Binance launched stock tokens tied to companies like Tesla, Coinbase, MicroStrategy, Apple and Microsoft. The initiative faced regulatory scrutiny in Europe and the U.K., prompting Binance to cease support for stock tokens in July 2021. Regulators including Germany’s financial authority and the U.K.’s Financial Conduct Authority raised questions about investor protections and whether such offerings complied with existing securities laws.
What’s changed since then
Binance says it has expanded support for tokenized real-world assets (RWAs) and introduced TradFi perpetual contracts settled in stablecoin, marking progress in regulated product development. The exchange has also adjusted its APIs in ways that hinted at potential stock trading features late last year. Meanwhile, other exchanges such as Coinbase are reportedly weighing tokenized stock listings, reflecting a broader industry interest in tokenized equities as part of the evolving digital-asset ecosystem.
Regulatory landscape and U.S. market-structure debate
U.S. lawmakers are debating market-structure legislation to clarify how digital assets, including tokenized equities, should be regulated. The Senate Agriculture Committee and Senate Banking Committee have both advanced competing frameworks; the Agriculture Committee scheduled a markup while the Banking Committee postponed its session after Coinbase withdrew support. Coinbase CEO Brian Armstrong warned that aspects of the draft bill could act as a de facto ban on tokenized equities if enacted as-is.
Implications for investors and exchanges
Any reintroduction of tokenized equities by Binance would hinge on clear regulatory guidance and robust compliance mechanisms. Investors should watch for licensing, custody arrangements, trading venue oversight, and settlement processes—especially where stablecoins and cross-border trading are involved. If properly regulated, tokenized stocks could boost liquidity and fractional access, but they also raise questions about market integrity, custody risk, and investor protection.
Outlook
Binance’s renewed interest in tokenized equities highlights the industry's push to integrate TradFi assets with blockchain infrastructure. Progress will depend on regulatory clarity in major markets and how exchanges implement compliance and custody safeguards. For crypto and TradFi participants, tokenized equities remain a promising but closely watched innovation in the digital-asset landscape.
Source: cointelegraph
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