Binance Plans to Revive Tokenized Stock Trading

Binance is reportedly gearing up to resume tokenized stock trading on its platform, a service it discontinued back in 2021 amid regulatory scrutiny. This revival comes as traditional finance and blockchain technology continue to converge, with tokenized assets gaining traction in the market.

Background on the Incident

Binance initially launched stock tokens in April 2021, allowing users to trade fractional shares of companies like Tesla (TSLA) and Apple (AAPL) using cryptocurrencies such as BNB. However, the product faced backlash from regulators in Europe and Asia, including warnings from authorities in Germany and the UK over potential securities law violations. By July 2021, Binance halted new stock token purchases, and fully wound down the service by October that year, citing the need to comply with evolving global regulations. This incident highlighted the challenges of bridging crypto and traditional stock markets, but it also paved the way for more compliant innovations in the space.

The Planned Resumption

According to recent reports, Binance is now exploring a return to tokenized stocks, potentially relaunching the feature with enhanced regulatory safeguards. The exchange aims to offer users the ability to trade tokenized versions of popular equities directly on the platform, leveraging blockchain for faster settlements and lower fees. This move is part of a broader trend where crypto exchanges like Binance and competitors such as OKX are considering tokenized stocks to expand beyond pure cryptocurrency trading.

The initiative is expected to roll out in phases throughout 2026, with a focus on regions where regulatory clarity has improved, such as parts of Asia and the Middle East. Binance's founder, Changpeng "CZ" Zhao, has been vocal about the platform's future, though his recent comments have centered more on Bitcoin's potential supercycle in 2026 rather than specifics on stock trading.

Implications for BNB

This development could significantly enhance the utility of Binance's native token, BNB, which currently boasts a market cap exceeding $118 billion. Tokenized stock trading would likely increase BNB's demand for transaction fees, liquidity provision, and ecosystem integrations on the BNB Chain. Analysts predict this could drive BNB's price toward $1,800 by the end of 2026, assuming Binance maintains its global dominance. Furthermore, the BNB Chain is set for technical upgrades in 2026, aiming to handle up to 20,000 transactions per second, which would support higher volumes from stock-related activities.

Recent updates from Binance emphasize BNB's evolution from a simple trading discount token to a cornerstone of a full-fledged blockchain ecosystem, including DeFi, NFTs, and now potentially tokenized real-world assets.

Market Reaction

The crypto community has reacted positively to the news, with BNB seeing a modest uptick in trading volume following the announcements. However, experts caution that success will depend on navigating regulatory hurdles effectively. As one source notes, this revival positions Binance at the forefront of onchain equities, racing against traditional markets to tokenize assets.