Binance is Exploring the Potential Relisting of Stock Tokens

On January 24, per a report from The Information, Binance is exploring reviving stock tokens on its platform—tokens it delisted back in 2021. Stock tokens are digital tokens tied to shares of publicly traded companies. Investors can purchase fractional shares via the blockchain network that holds and settles these tokens, with the tokens tracking the underlying asset’s price in real time. Binance first rolled out its stock token service in April 2021, starting with Tesla shares before quickly expanding to include Coinbase, MicroStrategy, Microsoft, and Apple. The launch drew regulatory scrutiny: the UK’s Financial Conduct Authority (FCA) and Germany’s Federal Financial Supervisory Authority (BaFin) questioned whether the tokens violated securities laws. By July 2021, Binance had shuttered the service. OKX Global Managing Partner Haider Rafique told The Information the exchange is also monitoring this space. Stateside, traditional financial firms are also looking to enter the arena—with the New York Stock Exchange (NYSE) and Nasdaq seeking regulatory approval to launch their own stock token products. A Binance spokesperson told The Information: “Exploring stock token offerings is a natural next step in our mission to better integrate traditional finance and crypto.” Still, legal hurdles persist. Stock tokens are among several unresolved issues in a cryptocurrency market structure bill moving through Congress. Industry insiders note that under the bill’s current language, launching such products would be delayed. Coinbase CEO Brian Armstrong has publicly pushed back against the legislation, calling for revisions that would let the SEC exempt certain stock token issuances from standard securities rules.