Summary
- Binance said it is adding a service that will allow users to trade more than 7,000 US stocks and ETFs commission-free.
- Binance said it plans to roll out within weeks a tokenized stock service called bStocks that will convert customers' stocks into digital assets.
- Customers will be able to buy stocks using digital assets including USDC, USDT and BNB, which Binance said could open the door to DeFi use cases.
Forecast Trend Report by Period
Binance is adding trading in US stocks and exchange-traded funds, broadening its push beyond crypto into a multi-asset platform spanning equities, ETFs and tokenized assets.
The exchange will let users trade more than 7,000 US stocks and ETFs, Fortune reported on June 1. Binance also plans to launch a tokenized stock service that would allow customers to convert shares they hold into digital assets.
Co-Chief Executive Officer Richard Teng told Fortune that US equities account for more than half of global stock-market capitalization, yet overseas investors still face high costs and procedural hurdles when buying them. Binance plans to offer commission-free stock trading to customers outside the US, along with fractional-share purchases starting at $5.
Binance will route stock trades through broker-dealer Nest Trading. New York-based Alpaca will handle custody, dividend payments and corporate actions. Customers will be able to buy stocks using stablecoins such as USD Coin and Tether, as well as certain digital assets including BNB.
Alongside the stock-trading service, Binance also unveiled its bStocks plan. Teng described it as a model that converts some of the shares customers buy into digital tokens on BNB Chain. Binance said the service will be available within weeks.
Tokenized stocks offer faster settlement than traditional equity trades. Conventional stock transactions can take more than a day to settle through Wall Street intermediaries, while blockchain-based trades can be completed almost instantly.
Binance said bStocks will provide a native bridge between traditional share ownership and programmable tokenized assets that trade around the clock. The company said that could improve the portability and utility of real-world shares and open the way for decentralized-finance applications such as lending and liquidity provision.
Fortune said the move underscores the accelerating convergence of crypto and traditional finance. Coinbase is also adding stock trading as it pursues an "everything exchange," while Wall Street firms including BlackRock are offering traditional financial products such as US Treasuries through blockchain-based structures.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
