BREAKING: Binance Launches US Stocks, ETF Trading In Tokenized Equities Plan
Highlights
- Binance introduces trading of more than 7,000 U.S. stocks and ETFs to eligible non-U.S. users.
- They provide fractional shares for purchase starting from $5 with USDC, USDT, BNB and some cryptocurrencies.
- On its part, the exchange is rolling out tokenized equities in its new “bStocks” product.
Binance, the world’s biggest crypto exchange by trading volume, has entered the U.S. stock trading arena. It will help users outside the U.S. to trade over 7,000 U.S. stocks and ETFs as part of the initiative.
Binance To Launch Tokenized US Stocks
Access to American equities will be easier for foreign investors with Binance’s new offering. It will provide zero-commission trading and fractional share purchases beginning at $5. Users will have the ability to pay for stocks with stablecoins like USTC and USDT, and some cryptocurrencies, including Binance Coin (BNB).
Binance co-CEO Richard Teng that there is an increasing appetite among investors in other countries for American stocks, per Fortune report. He said that U.S. stocks make up “well over half of the global equities market.” He added that investors outside the United States have a lot of obstacles and costs to get into those markets.
The deal will see the stock trades carried out by the broker-dealer Nest Trading. Meanwhile, New York-based Alpaca will take care of custody and distribute dividends and corporate actions.
It is also the exchange’s latest leap off the crypto space. Teng noted that the exchange already has a variety of traditional asset-based derivatives. These include gold, petrochemicals and pre-IPO shares. Recently, Binance even launched SpaceX pre-IPO trading after the Elon Musk-led firm filed for an IPO with the SEC.
The announcement follows a recent trend of blurring the lines between crypto platforms and traditional financial institutions. Some crypto exchanges like Kraken are now offering tokenized products. Wall Street giants such as BlackRock and JPmorgan have also entered the tokenization push.
About The bStocks Initiative
In addition to its stock trading, Binance announced a tokenized stock solution called “bStocks.” The company says that soon users can convert stock ownership into tokens on the BNB Chain. It added that the company’s initial offering will be a 3.8 million EUR perpetual token. In this, each token will represent one BNB share.
It is like customers can produce a synthetic digital copy of some of the securities, Teng explained. Binance stated that the project would enable the “native bridge from traditional stock ownership to programmable, always-on tokenized assets at a global scale.”
The exchange explained that tokenized stocks may create new use cases in Decentralized Finance (DeFi). It could boost lending and liquidity provision while offering on-chain exposure to equities at all times, Binance said.
For those looking for DeFi-backed borrowing, check out our list of DeFi Lending Platforms.
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