Binance opened access to more than 8,000 US stocks and exchange-traded funds for its non-US customers on Monday. The world’s largest crypto exchange framed the launch as a step toward becoming a multi-asset financial super app.
The move places Binance alongside rivals racing to merge crypto rails with traditional equity markets. Customers can buy fractional shares starting at $5, with zero commission, using stablecoins or the exchange’s own token.
Crypto Exchanges Chase Wall Street
The launch reflects a wider convergence between crypto platforms and traditional finance. Exchanges that once focused on tokens now want a slice of the equities business.
Co-CEO Richard Teng told Fortune that US stocks make up well over half of global equities. Yet many overseas buyers face high costs and friction when they try to access them.
Binance is not alone in this shift. Earlier, OKX moved to enter traditional finance through tokenized stocks, while Coinbase added stock trading in its everything exchange bid.
Wall Street is meeting crypto halfway. Asset manager BlackRock has issued Treasury bills as blockchain wrappers, blurring the line between the two markets.
How Binance’s Stock Trading Works
Share purchases on Binance will be arranged by a broker-dealer called Nest Trading. A New York firm, Alpaca, will handle custody, dividend payments, and corporate actions.
Customers can pay using the stablecoins USDC or USDT. They can also use a handful of other tokens, including Binance’s own BNB.
The push is not the exchange’s first step beyond crypto. Binance already offers derivatives tied to gold, petrochemicals, and pre-IPO share trading.
However, its record here is mixed. Binance halted stock tokens in 2021 after regulators questioned whether the products were unregistered securities.
Binance also outlined a plan for bStocks, which will let users tokenize the equities they buy. Customers can convert shares into digital tokens on BNB Chain in the coming weeks.
The design stands out because users can start the tokenization themselves. Rivals such as Kraken and Robinhood have launched similar products, with Kraken tokenizing US tech stocks for overseas markets.
Supporters point to speed. Blockchain-based trades can settle almost instantly, against the days or more that Wall Street intermediaries need.
In a statement, Binance described the aim of the new product.
Not everyone is sold. Some critics warn that tokenized stocks could add risk to the US equity market, even as the New York Stock Exchange and Nasdaq have announced tokenization plans.
Whether self-service tokenization draws real equity volume on-chain may become clearer in the weeks ahead as bStocks goes live.
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Source: https://beincrypto.com/binance-adds-8000-us-stocks-tradfi/
