Major cryptocurrency exchanges are reportedly positioning to bring tokenized stock trading onto the blockchain, signaling a renewed push to merge traditional financial markets with digital assets. 

According to a report published Friday by The Information, platforms such as Binance are exploring ways to offer crypto tokens that track publicly listed US companies, effectively creating new channels for equity exposure through tokenized instruments.

Binance And OKX Explore Tokenized Stocks

The report says Binance is considering reintroducing stock tokens to its platform, several years after pulling similar products in 2021 amid regulatory uncertainty. 

The plan, cited by a person familiar with the matter, reflects a broader shift within the industry as exchanges revisit tokenized equities under evolving market and compliance frameworks. 

OKX is also said to be evaluating the possibility of offering tokenized stocks, according to Haider Rafique, the company’s global managing partner and chief marketing officer.

Binance has framed the move as part of its long-term strategy to connect traditional finance with the crypto ecosystem. In a statement to CoinDesk, a Binance spokesperson said the exchange is focused on expanding user choice while maintaining strict regulatory standards. 

The company noted that it began supporting tokenized real-world assets (RWAs) last year and recently launched what it described as the first regulated traditional finance perpetual contracts settled in stablecoins. 

Exploring tokenized equities, the spokesperson said, is a natural progression as Binance continues to build infrastructure, collaborate with established financial institutions, and develop new products for users and the wider industry.

Binance and OKX are not alone in this effort. Several major crypto firms, including Robinhood (HOOD), Gemini (GEMI), and Kraken, have already rolled out tokenized stock offerings in Europe. Meanwhile, Robinhood and blockchain startup Dinari are seeking regulatory approval to introduce similar products in the United States.

Tokenized Shares Gain Increased Interest

Robinhood took a significant step in June of last year when it launched trading in tokens linked to publicly listed companies and announced plans to expand into tokenized shares of private firms. 

As part of the rollout, the company distributed tokens pegged to OpenAI. According to Robinhood’s terms and conditions, those tokens function as derivative contracts backed by the firm’s ownership of fund units in a special-purpose vehicle that holds OpenAI convertible notes. 

Coinbase (COIN), on the other hand, is reportedly in discussions with the US Securities and Exchange Commission (SEC) about launching tokenized securities that would grant investors the same legal rights and benefits as conventional shares. 

Several issuers involved in the space say they are closely adhering to established rules around securities law, anti-money laundering requirements, bankruptcy protections, and investor safeguards.

Industry leaders argue that, when structured properly, tokenization can strengthen rather than weaken investor protections. Ian De Bode, chief strategy officer at Ondo Finance, said that a careful approach to tokenized securities can enhance safeguards while unlocking efficiencies that traditional markets struggle to achieve.

Featured image from OpenArt, chart from TradingView.com 

On Monday, the New York Stock Exchange (NYSE) unveiled its latest plan to develop a tokenized securities platform, utilizing blockchain technology to facilitate 24/7 stock trading, now seeking regulatory approval.

New Digital Trading Venue At NYSE

According to Monday’s announcement, the proposed digital platform will offer a tokenized trading experience that includes around-the-clock operations, instant settlements, dollar-sized orders, and stablecoin (dollar-pegged cryptocurrencies) funding options. 

By integrating the NYSE’s “advanced Pillar matching engine” with blockchain-based post-trade systems, the firm disclosed that the new platform will support multiple chains for settlement and custody, streamlining the trading process significantly.

Once regulatory approvals are secured, this platform will reportedly create a new venue at the NYSE for trading tokenized shares. These shares will not only be fungible with traditional securities but will also comprise tokens that are issued natively as digital assets. 

Interestingly, tokenized shareholders will retain their rights, including eligibility for dividends and participation in company governance, much like traditional shareholders. The trading venue aims to align with established market structure principles and will provide non-discriminatory access to all qualified broker-dealers.

The launch of this tokenized securities platform is part of the Intercontinental Exchange’s (ICE) broader digital strategy, which includes preparing its clearing infrastructure for continuous trading and potentially integrating tokenized collateral. 

Competition Heats Up

ICE is collaborating with major financial institutions like BNY Mellon and Citigroup to facilitate tokenized deposits across its clearinghouses. This effort will help clearing members manage funds and fulfill margin requirements outside of regular banking hours.

Lynn Martin, President of NYSE Group, emphasized the significance and innovation surrounding this development, stating: 

For more than two centuries, the NYSE has transformed the way markets operate. We are leading the industry toward fully on-chain solutions grounded in unmatched protections and high regulatory standards.

The company’s President further stated that the New York Stock Exchange aims to combine trust with “state-of-the-art technology,” effectively reinventing market infrastructure to meet the evolving demands of a digital future.

Michael Blaugrund, Vice President of Strategic Initiatives at the Intercontinental Exchange, echoed Martin’s sentiment, noting: 

Since its founding, ICE has propelled markets from analog to digital. Supporting tokenized securities is a pivotal step in our strategy to operate on-chain market infrastructure for trading, settlement, custody, and capital formation in the new era of global finance.

In parallel to these developments, the NYSE’s main competitor, Nasdaq, along with the CME Group, has intensified efforts to provide institutional investors with a regulated mechanism to measure cryptocurrency markets. 

They recently reintroduced the Nasdaq Crypto Index, renamed as the Nasdaq-CME Crypto Index (NCI), designed to support products such as exchange-traded funds (ETFs) and structured funds. This move aims to establish clearer rules and governance for index-based cryptocurrency exposure.

Featured image from DALL-E, chart from TradingView.com