Binance Weighs Return to Tokenized Stock Trading After 2021 Shutdown

Binance is considering relaunching tokenized stock trading, a service it pulled in 2021 amid regulatory concerns.

Stock tokens are blockchain-based representations of shares in companies like Apple or Microsoft, allowing investors to buy fractional ownership that tracks real-time market prices. The offering is part of Binance’s broader effort to bridge traditional finance and crypto.

“Binance is focused on expanding user choice while maintaining the highest regulatory standards,” a spokesperson told CoinDesk. “Since last year, we’ve supported tokenized real-world assets and launched the first regulated TradFi perpetual contracts settled in stablecoin. Offering tokenized equities is a natural next step in our mission.”

A Past Attempt and Persistent Demand

Binance initially launched stock tokens in April 2021, starting with Tesla and later adding Microsoft, Apple, Coinbase, and Strategy. Regulators in the U.K. and Germany raised questions about potential securities law violations, leading Binance to shut the program by July 2021.

Despite the previous pullback, interest in tokenized stocks remains high. Exchanges such as OKX are exploring similar offerings, while the NYSE and Nasdaq seek approval for their own stock token products. Coinbase is also reportedly preparing on-chain stock offerings.

Regulatory Hurdles Continue

Legal uncertainty remains a key challenge. Tokenized stocks were flagged in a pending crypto market structure bill in Congress, which could delay new launches. Coinbase CEO Brian Armstrong has called for changes allowing the SEC to exempt certain tokenized offerings from standard securities rules.