TechFlow News, January 24: According to CoinDesk, Binance is considering relaunching its tokenized stock trading service. Tokenized stocks are digital representations of publicly traded company shares, enabling investors to trade fractional shares on a blockchain without purchasing whole shares.
This is not Binance’s first foray into tokenized stocks; it initially launched the service in April 2021, starting with Tesla shares and quickly expanding to include companies such as Coinbase, Microsoft, and Apple.
However, the service was shut down in July of the same year following scrutiny from the UK’s Financial Conduct Authority (FCA) and Germany’s Federal Financial Supervisory Authority (BaFin).
Despite ongoing legal and regulatory hurdles, interest in tokenized stocks remains strong. Other cryptocurrency exchanges, including OKX, are also exploring this space, while traditional financial institutions such as the New York Stock Exchange (NYSE) and Nasdaq are seeking regulatory approval to launch tokenized stock products.
