Binance Brings Stock and ETF Trading to Its Crypto Platform
Binance is moving beyond cryptocurrency to allow users to trade stocks and exchange-traded funds (ETFs).
Starting Monday (June 1), users will get access to upwards of 7,000 U.S. stocks and ETFs on its app, along with crypto tokens, the world’s largest crypto platform said in its announcement.
“Today’s users don’t think in silos. They want access to multiple markets, flexible trading hours, and a platform that fits how they already manage their finances,” the announcement said.
“Stocks trading on Binance is designed for both crypto-native users looking to start trading stocks and stock traders seeking a more unified, global investing experience. Whether diversifying beyond crypto for the first time or looking for a more convenient way to access both crypto and stocks, Binance offers a simpler path forward.”
The company also plans to launch bStocks, tokenized securities which are representations of certain U.S. stocks and ETFs, letting users convert their equity holdings on Binance to on-chain assets. The official launch of bStocks is scheduled for the weeks ahead.
The launch is the latest example of the blending of the crypto and traditional finance worlds. Earlier this year, cryptocurrency exchange Coinbase began offering stock and ETF trading, part of what the company called its “Everything Exchange” vision.Advertisement: Scroll to Continue
Meanwhile, U.S. regulators are considering a plan to allow cryptocurrency companies trade tokenized assets tied to stocks.
The Securities and Exchange Commission (SEC) had been preparing to introduce its “innovation exemption” for tokenized stocks last month, but reportedly put that plan on hold.
As Bloomberg News reported, that delay came as the regulator weighs feedback on the plan from stock-exchange officials and other market participants.
One area of the plan that has triggered concerns is a section that would allow the trading of third-party tokens, which would be issued minus the support or permission of the public companies in question.
Regulators see tokenization “as a primary driver for efficiency, potentially streamlining security issuance and asset management while lowering costs and enhancing market resilience,” PYMNTS wrote last month in a report on a similar plan being proposed in the U.K.
Back in the U.S., the Depository Trust & Clearing Corporation (DTCC), which custodies assets worth more than $114 trillion, is scheduled to introduce a tokenization service for real-world assets in October after offering limited production trades in July.
