Binance Explores Relaunching Stock Tokens Amid Unresolved Regulatory Questions

Binance is exploring bringing stock tokens back to its platform after discontinuing the product in 2021, The Information reports. The exchange launched stock token trading in April 2021 with Tesla shares and expanded to Coinbase, MicroStrategy, Microsoft and Apple—offering blockchain-based tokens that track publicly listed stocks in real time with fractional exposure—before shutting the service that July following scrutiny from the UK's FCA and Germany's BaFin over securities law compliance. OKX global managing partner Haider Rafique said OKX is monitoring the segment, while the NYSE and Nasdaq are seeking regulatory approval to launch similar products. A Binance spokesperson said assessing stock token feasibility is a natural step in linking traditional finance with crypto, but legal barriers remain: stock tokens are among unresolved issues in a pending U.S. crypto market structure bill that could delay such offerings, which Coinbase CEO Brian Armstrong has opposed while urging the SEC to exempt certain issuances from standard securities rules.