Binance Eyes a Comeback for Tokenized Stock Trading After Its 2021 Shutdown
Binance is exploring a revival of tokenized stock trading, signaling renewed interest in a sector that blends traditional equity markets with blockchain infrastructure — and one the exchange previously abandoned under global regulatory pressure.
The move, first reported by The Information, would mark Binance’s second attempt to bring fractional, blockchain-based versions of public company shares to retail traders worldwide.
Tokenized stocks represent digital claims on real-world equities like Apple, Microsoft, or Tesla, with prices that mirror the underlying asset and the ability to buy fractions rather than full shares.
A spokesperson for Binance confirmed the discussions, framing the effort as part of a broader strategic push toward real-world asset (RWA) tokenization.
“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 started supporting tokenized real-world assets, and we recently launched the first regulated TradFi perpetual contracts settled in stablecoin.”
“Exploring the potential to offer tokenized equities is a natural next step in our mission to bring TradFi and crypto closer together as we continue to actively build infrastructure, partner with traditional institutions, and develop innovative solutions for our users and the industry,” the spokesperson added.
A Return to a Controversial Product
This isn’t new terrain for the world’s largest crypto exchange.
Binance originally debuted tokenized stock trading in April 2021, starting with Tesla before expanding to Coinbase, MicroStrategy, Apple, and Microsoft. For months, the product was heavily marketed as a gateway for crypto-native investors to gain exposure to blue-chip equities without leaving the blockchain ecosystem.
But the early experiment was short-lived.
Regulators in Europe quickly questioned whether the product violated securities laws. The U.K. Financial Conduct Authority (FCA) said it was reviewing the offering, while Germany’s BaFin suggested the tokens might require a prospectus — something Binance had not issued. Under mounting scrutiny, the exchange shuttered the service entirely in July 2021.
The episode became a high-profile case study in the frictions between crypto innovation and jurisdictional compliance — one that exchanges have been cautious to revisit.
Renewed Momentum Across the Industry
Despite the regulatory turbulence, interest in stock tokenization has surged again in 2025 and 2026, driven by deepening institutional support for RWAs and a growing belief that traditional equities will eventually move onchain.
Binance isn’t alone. OKX is also exploring tokenized stock trading, according to global managing partner Haider Rafique. In the U.S., major traditional venues — including the New York Stock Exchange and Nasdaq — have submitted filings seeking regulatory approval to offer on-chain stock tokens.
Meanwhile, Coinbase is preparing its own push into tokenized equities as part of its wider strategy to become a hub for regulated digital asset markets.
The shift reflects broader momentum: regulators, asset managers, and market operators increasingly see tokenized assets as a pathway toward faster settlement, lower operational costs, and round-the-clock trading.
Legal and Political Hurdles Remain
Even with new enthusiasm, the industry faces unresolved regulatory questions.
Tokenized stocks were one of several sticking points in a major U.S. crypto market structure bill that had been gaining traction in Congress. Industry executives argued that the bill, as drafted, could slow innovation and prevent exchanges from launching compliant tokenized equity products.
Coinbase CEO Brian Armstrong was among the most vocal critics, urging lawmakers to revise the legislation to allow the SEC flexibility to exempt certain tokenized offerings from traditional securities requirements.
For now, the legal landscape remains uncertain — but the renewed push from Binance and its competitors suggests the market is preparing for a future where stocks trade alongside stablecoins and tokens on public blockchains.
Whether regulators agree remains the defining question.
