Binance is making another move to bridge the gap between digital assets and traditional finance. In an announcement on Monday, the company said users will soon be able to trade over 7,000 US stocks and exchange-traded funds (ETFs). It also shared plans to let customers convert their stocks into tokenized, crypto-style digital assets. This is part of Binance’s broader goal to become a “multi-asset financial super app.”
Binance Aims for ‘Friction-Free’ Stock Trading
Speaking to Fortune, Binance co-CEO Richard Teng explained why this move is focused on customers outside the United States. He noted that US stocks make up more than half of the global equity market, but for many international investors, buying them can be expensive and complicated. Binance’s solution, Teng said, is to offer zero-commission stock trading for non-US users, along with the ability to buy fractional shares starting at just $5. This lowers both the cost and the complexity of getting involved.
How It Works
Operationally, Binance said the new stock trading service will be supported by a broker-dealer called Nest Trading. For custody and settlement, a New York-based firm called Alpaca will handle those tasks, including dividend payments and corporate actions. Customers can fund their stock purchases using stablecoins like Circle’s USDC or Tether’s USDT, as well as other digital currencies, including Binance’s own BNB.
Alongside the trading program, Binance introduced a more ambitious concept: “bStocks.” The company says bStocks will allow users to tokenize the equities they buy. According to Teng, this works by creating a synthetic, digital token version of certain stocks, which are converted into tokens on Binance’s BNB blockchain. The company expects this feature to become available in the coming weeks.
While other major platforms have tried similar models over the past year, Binance believes its approach could stand out. Competitors like Kraken and Robinhood have launched similar offerings, but Binance says its bStocks plan is different because it lets customers start the tokenization process themselves, rather than relying only on the platform’s preset conversion options.
Reactions and Competition
The announcement has sparked reactions. On X (formerly Twitter), analyst Zero Kyle argued that this development could be bad for the decentralized exchange (DEX) Hyperliquid (HYPE). Kyle said that while Binance’s expanded offering might not be available 24/7 like Hyperliquid’s trading platforms, it’s likely to increase competition and could lead to a direct battle for market share. He added that the news might not be “bad for HYPE the token” specifically, but it could be “bad for Hyperliquid the exchange” due to the heightened competition.
Meanwhile, Binance’s native token, BNB, was trading at $692 at the time of writing. This reflects the broader crypto market’s decline on Monday, with a 2.3% drop so far.
Featured image created with OpenArt; chart from TradingView.com
Frequently Asked Questions
Here is a list of FAQs about Binance launching trading access to over 7000 US stocks and ETFs along with the new tokenization plan
General Beginner Questions
1 Wait I can buy Apple and Tesla stock on Binance now
Yes Binance now allows you to trade tokenized versions of over 7000 US stocks and ETFs directly on their platform
2 What does tokenized mean in simple terms
It means Binance creates a digital token that represents one share of a real stock When the real stock price goes up the tokens price goes up too You dont own the actual stock certificate but you get the same financial exposure
3 Do I need to open a separate brokerage account
No You can buy these stock tokens using your existing Binance account and crypto wallet You dont need a traditional stock broker
4 Can I buy fractional shares
Yes Because these are tokens you can buy a fraction of a share If a stock costs 500 you can buy 10 worth of it
5 What is the new tokenization plan you mentioned
This is Binances strategy to convert realworld assets into digital tokens The 7000 stocks are the first major step of this plan
Advanced Technical Questions
6 How is the price of a stock token guaranteed to match the real stock price
Binance uses a system of custodians and arbitrage They hold the actual underlying stock in a regulated trust If the token price drifts traders can buy the cheaper one and sell the expensive one forcing the prices back together
7 Do these tokens pay dividends
Yes If the real stock pays a dividend the tokenized version is designed to pass that dividend through to you However the timing and exact amount may differ slightly from the real stock
8 What happens to my tokens if Binance shuts down or gets hacked
This is the biggest risk Unlike a real stock held in your name you hold a token issued by Binance If Binance becomes insolvent you may lose your tokens The legal