Binance, the leading cryptocurrency exchange globally, has revealed that its users will soon have access to trade over 7,000 U.S. stocks and exchange-traded funds (ETFs). In addition to this new trading capability, the company is also unveiling a plan to enable customers to convert their stock holdings into digital assets, aiming to establish itself as a comprehensive “multi-asset financial super app.”
During an interview, Binance co-CEO Richard Teng highlighted that U.S. stocks account for a significant portion of the global equities market. However, he noted that buying these stocks can be costly and cumbersome for international investors. To address these challenges, Binance intends to offer zero-commission trading for these stocks to non-U.S. clients, alongside the option for fractional share purchases starting at just $5.
The trading of shares on Binance will be facilitated by a broker-dealer, Nest Trading, with custody handled by New York-based firm Alpaca, which will also manage dividend payments and corporate actions. Customers can purchase stocks using stablecoins such as USDC or USDT, as well as other cryptocurrencies, including Binance’s own BNB token.
Teng emphasized that this initiative marks another step in Binance’s ongoing expansion beyond cryptocurrencies. The exchange already provides a range of derivatives that offer exposure to various non-crypto assets, including gold, petrochemicals, and pre-initial public offering shares.
The move into stock trading aligns with a wider trend of convergence between cryptocurrency platforms and traditional finance. Competitors like Coinbase have also entered the stock trading arena as part of their strategy to position themselves as “everything exchanges.” In parallel, traditional financial firms such as BlackRock have begun to offer investments in instruments like T-bills via blockchain technology.
In conjunction with its stock trading program, Binance announced ambitious plans for “bStocks,” which will allow users to tokenize the equities they purchase. According to Teng, this means that customers will soon be able to create synthetic versions of select stocks by converting them into digital tokens on Binance’s BNB blockchain.
While similar offerings have emerged from other companies such as Kraken and Robinhood in recent months, Binance’s approach is distinctive in that it allows users to initiate the tokenization process independently.
The concept of tokenized stocks may initially appear complex or unnecessary; however, it presents several advantages over traditional stock trading. Key among these is the near-instant settlement of blockchain-based trades, contrasting sharply with the conventional methods that typically involve intermediaries on Wall Street and may take a day or longer to complete transactions.
Despite concerns about potential risks to the U.S. equity markets arising from tokenized stocks, acceptance of the concept is growing, with the New York Stock Exchange and Nasdaq announcing similar intentions to incorporate such technology.
In its statement, Binance emphasized that its bStocks offering will create a “native bridge from traditional stock ownership to programmable, always-on tokenized assets at a global scale.” This initiative aims to enhance the mobility and utility of real-world equities, both within and outside the Binance ecosystem, paving the way for continuous on-chain access and potential decentralized finance (DeFi) applications, such as lending and liquidity provision.
