Key Takeaways
- Binance processed over $3 billion in US stock and ETF trades in its first month offering tokenized equities
- The feature allows crypto users to buy fractional shares of American companies like Apple and Tesla
- This signals growing demand for crypto-native access to traditional markets, especially from regions with limited US brokerage options
Binance's foray into tokenized US equities has crossed $3 billion in trading volume, just one month after the feature went live. Richard Teng, co-CEO of the world's largest cryptocurrency exchange, disclosed the figure during an interview at the Reuters NEXT Asia event in Singapore on Thursday.
That $3 billion figure translates to roughly $100 million per day in tokenized stock and ETF trades. For context, Binance handles around $76 billion in daily volume across its crypto products, so this new offering represents a small but meaningful slice of the business.
What are tokenized stocks on Binance?
Tokenized stocks let users buy fractional shares of major US companies, including Apple, Tesla, and popular ETFs, through Binance's existing crypto infrastructure. Instead of opening a traditional brokerage account, users trade digital tokens that represent ownership in these securities.
The appeal is straightforward. Many Binance users, particularly those outside the US, face barriers to accessing American equity markets. Tokenized stocks remove the friction of currency conversion, minimum account balances, and geographic restrictions that traditional brokerages impose.
Why did Binance move into traditional assets?
Binance's push into tokenized equities represents a broader strategy to bridge decentralized finance with traditional markets. The company wants its 150 million registered users to access every asset class without leaving the platform.
This isn't unique to Binance. Competitors like Robinhood have moved in the opposite direction, adding crypto to their stock trading apps. The convergence is obvious: retail investors want one interface for everything, whether that's Bitcoin, Tesla shares, or Treasury ETFs.
“Trading in U.S. stocks and exchange-traded funds on Binance has exceeded $3 billion since the activity's launch a month ago.”
— Richard Teng, Co-CEO of Binance
Teng's leadership since the CZ settlement
Richard Teng took over as CEO in November 2023 after founder Changpeng Zhao stepped down as part of Binance's $4.3 billion settlement with US regulators. Since then, Teng has focused on compliance and product expansion, attempting to rehabilitate the exchange's reputation while maintaining its market dominance.
The tokenized stocks launch fits that playbook. It gives Binance a new revenue stream while signaling maturity to regulators. Offering traditional financial products suggests the company wants to operate within existing frameworks, not around them.
The regulatory question remains open
Tokenized securities exist in a legal grey zone in many jurisdictions. The US Securities and Exchange Commission has been aggressive about asserting that many crypto products qualify as securities. Whether tokenized stocks offered by an offshore exchange to non-US users falls under SEC jurisdiction is unclear.
Binance's announcement notably came from Singapore, not the US. The company operates a separate, regulated entity for American customers (Binance.US), which has faced its own regulatory challenges. The tokenized stocks feature appears aimed at Binance's international user base.
What this means for crypto-TradFi convergence
The $3 billion figure, while modest compared to Binance's overall volume, proves demand exists. Crypto users want access to traditional assets. Traditional investors increasingly want exposure to crypto. The platforms that can serve both audiences efficiently will likely win.
For fintech founders and CTOs, the lesson is clear. Users don't care about the underlying rails. They care about access, fees, and experience. Whether settlement happens on a blockchain or through DTCC is an implementation detail, not a product feature.
Logicity's Take
Binance's $3 billion month suggests tokenized stocks aren't a gimmick. They're a distribution channel for US equities that traditional brokerages have ignored. Companies like Interactive Brokers and Fidelity serve international clients, but with friction that crypto platforms eliminate. If Binance can avoid regulatory shutdown, they've found a real wedge into traditional finance. The question is whether regulators let them keep it.
Frequently Asked Questions
How do tokenized stocks on Binance work?
Users purchase digital tokens that represent fractional ownership in US stocks and ETFs. These tokens trade 24/7 on Binance's platform, backed by actual shares held by a custodian. Users can buy partial shares, avoiding the minimum investment requirements of traditional brokerages.
Can US residents buy tokenized stocks on Binance?
No. Binance's tokenized stock offering is aimed at international users. US residents must use Binance.US, which does not currently offer tokenized equities due to regulatory restrictions.
What is Binance's total daily trading volume?
Binance processes approximately $76 billion in daily trading volume across all crypto products, making it the world's largest cryptocurrency exchange by volume.
Who is Richard Teng?
Richard Teng became Binance's CEO in November 2023 after Changpeng Zhao stepped down as part of the company's $4.3 billion settlement with US regulators. Teng previously led regulatory affairs at the Abu Dhabi Global Market.
Need Help Implementing This?
If you're building fintech products that bridge crypto and traditional assets, or need to understand the compliance landscape for tokenized securities, reach out to Logicity's network of fintech advisors for guidance.
Source: Tech-Economic Times / ET
Manaal Khan
Tech & Innovation Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
