Binance is assessing whether to bring back stock tokens, reviving a product line it launched in April 2021 and shut down by July 2021 after regulatory concerns surfaced.
Product once launched with Tesla exposure and later expanded
Stock tokens are blockchain-based representations tied to publicly listed shares. They allow investors to gain fractional exposure without buying a full share, while holding and settling the position on-chain and tracking the price of the underlying asset in real time. The model has long been viewed as a bridge between traditional finance and crypto markets.
When Binance first introduced the service, it started with a Tesla stock token and later added products linked to Coinbase, Strategy, Microsoft, and Apple. The offering quickly drew scrutiny from the UK Financial Conduct Authority, or FCA, and Germany’s Federal Financial Supervisory Authority, BaFin. Both raised questions over whether the product could fall under securities rules, and Binance eventually closed the service entirely.
OKX and major US exchanges are also watching the segment
Interest in tokenized equities is not limited to Binance. OKX global managing partner Haider Rafique said the exchange is also evaluating opportunities around stock tokens. In the US, the New York Stock Exchange and Nasdaq are likewise seeking regulatory approval for related products. That points to a broader contest forming across crypto venues and established financial institutions.
Binance calls it a natural step, but legal hurdles remain
On the prospect of a relaunch, a Binance spokesperson said exploring stock tokens is a natural next step in the company’s mission to bring traditional finance and crypto closer together. The legal issues, though, remain unresolved. According to the report, stock tokens touch on several areas that are still not clearly addressed in crypto market structure legislation being advanced in the US Congress, which could delay any formal launch under the current framework.