Cryptocurrency exchange Binance has confirmed that it will resume offering tokenized equities on its platform for the first time since 2021. According to a spokesperson from Binance, the move to provide tokenized stocks aligns with their commitment to merging traditional finance with cryptocurrency.
The spokesperson stated that exploring the reintroduction of tokenized equities is a “natural next step” for the exchange. This follows their earlier cessation of stock token support in July 2021, during which they faced regulatory challenges.
“Binance is committed to bridging traditional finance and crypto, expanding user choices while maintaining the highest regulatory standards,” the spokesperson said. “Since last year, we have been supporting tokenized real-world assets and recently launched the first regulated TradFi perpetual contracts settled in stablecoin.”
Binance originally launched its stock tokens in April 2021, starting with Tesla and later extending to other companies like Coinbase, Apple, and Microsoft. However, these offerings attracted regulatory scrutiny from German authorities and led to a demand from the UK’s Financial Conduct Authority for Binance to cease its regulated activities in June 2021.
As regulations evolve, both the US Senate Agriculture and Banking Committees are discussing legislation related to digital asset market structure. Coinbase’s CEO, Brian Armstrong, has also expressed concerns about potential regulations affecting tokenized equities.
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Planned legislation may address the foundational aspects of tokenized equities and digital assets in the US. This week, the Senate Agriculture Committee is poised to discuss its bill, while the Banking Committee’s markup is on hold due to Coinbase’s withdrawal of support. Other implications include pushback from various interest groups over proposed provisions.
This article serves to inform and does not endorse any financial dealings or transactions.
