After stepping back in 2021, Binance is set to resume tokenized stock offerings.

Binance Considers Relaunching Tokenized Stock Trading After Regulatory Pullback

Binance is exploring a return to tokenized stock trading, reviving a service it abandoned in 2021 due to regulatory concerns.

Stock tokens allow investors to buy fractional shares of companies like Apple or Microsoft, with ownership recorded and settled on a blockchain. These tokens mirror the real-time prices of the underlying stocks, offering a bridge between traditional finance and crypto.

“Binance is committed to bridging traditional finance and crypto, expanding user choices while maintaining the highest regulatory standards,” a company spokesperson told CoinDesk. “Since last year, we’ve supported tokenized real-world assets and recently launched the first regulated TradFi perpetual contracts settled in stablecoin. Offering tokenized equities is a natural next step in this mission.”

Early Experiment and Regulatory Hurdles

Binance first introduced stock tokens in April 2021, starting with Tesla before expanding to Microsoft, Apple, Coinbase, and Strategy. The initiative drew scrutiny from regulators, including the U.K.’s Financial Conduct Authority and Germany’s BaFin, over potential securities law violations. By July 2021, Binance had shut down the program.

Interest in tokenized stocks has persisted. OKX is reportedly exploring similar offerings, while traditional exchanges like the NYSE and Nasdaq seek approval to launch their own stock token products. Coinbase is also preparing to offer stocks on-chain.

However, regulatory uncertainty remains a challenge. Tokenized stocks were highlighted in a pending crypto market structure bill in Congress, which could slow the introduction of such products. Coinbase CEO Brian Armstrong has called for changes that would allow the SEC to exempt certain tokenized offerings from standard securities regulations.