At a Glance
- Binance signals a comeback for tokenized equities after a 2021 pause.
- The move follows regulatory scrutiny that halted earlier offerings.
- Industry players and lawmakers are watching closely as new U.S. legislation looms.
Why it matters: The return of tokenized stocks could reshape how crypto users access traditional assets, blending finance with blockchain technology.
Binance has confirmed plans to bring tokenized equities back to its platform, the first time since it paused the feature in July 2021. In a statement to {brand} on Friday, a Binance spokesperson said, “exploring the potential to offer tokenized equities is a natural next step” for bridging traditional finance and crypto. “Binance is committed to bridging traditional finance and crypto, expanding user choices while maintaining the highest regulatory standards,” the spokesperson added. “Since last year, we started supporting tokenized real-world assets and we recently launched the first regulated TradFi perpetual contracts settled in stablecoin.”
Binance first launched stock tokens in April 2021, beginning with Tesla and later adding Coinbase, MicroStrategy, Apple, and Microsoft. The move aimed to give users a new way to trade shares of major technology firms on a crypto exchange. However, the offerings drew attention from German financial regulators, who raised concerns about securities compliance. In June 2021, the UK’s Financial Conduct Authority ordered Binance to halt “regulated activity” in the country, citing regulatory gaps. A December 2021 update to Binance’s application programming interface signaled that the platform was preparing for potential stock-trading features, though the exchange did not confirm a launch at that time. The pause in July 2021 marked the first time Binance stopped offering tokenized equities. German regulators and the UK FCA have scrutinized Binance’s tokenized equity offerings.
US lawmakers are debating a bill that would establish a market structure for digital assets. The Senate Agriculture Committee plans a markup on its version of the bill on Tuesday, while the Senate Banking Committee has postponed its markup indefinitely after Coinbase pulled support. Coinbase CEO Brian Armstrong posted on social media on Jan. 14 that the bill, if passed as written, would be a “defacto ban on tokenized equities.” Other interest groups, including banking associations and lawmakers, have opposed the bill over provisions on stablecoin rewards, conflicts of interest, and decentralized finance. The reintroduction signals Binance’s confidence in regulatory clarity. The move could attract new liquidity and create new trading strategies. The regulatory environment remains uncertain as new legislation is considered.
Binance’s commitment to maintaining the highest regulatory standards is highlighted in its statements. The launch of the first regulated TradFi perpetual contracts settled in stablecoin was a milestone. Since last year, Binance started supporting tokenized real-world assets. The December API change was a sign of Binance’s preparation for stock trading features. The pause in July 2021 was the first time Binance stopped offering tokenized equities. Coinbase is also reportedly exploring adding tokenized stocks. The U.S. Senate committees are both considering legislation to establish digital asset market structure.
Timeline of Binance’s Tokenized Equity Activities
| Date | Event |
|---|---|
| April 2021 | Binance launches stock tokens (Tesla, Coinbase, MicroStrategy, Apple, Microsoft). |
| June 2021 | UK FCA orders Binance to halt regulated activity. |
| July 2021 | Binance ceases support for stock tokens. |
| December 2021 | API change signals groundwork for future stock trading. |
| Friday (current) | Binance announces plans to reintroduce tokenized equities. |
Key Takeaways
- Binance is poised to revive tokenized equities after a 2021 pause, marking a significant shift in its offerings.
- The move comes amid heightened regulatory scrutiny in Europe and evolving U.S. legislation that could impact tokenized assets.
- Industry stakeholders, including Coinbase and U.S. lawmakers, are actively shaping the future of tokenized equities.
- Regulatory actions in Germany, the UK, and the U.S. demonstrate the challenges of aligning crypto innovation with securities law.
- Users should monitor Binance’s rollout and the progress of U.S. legislation for potential impacts on access and trading.
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