Binance announced it will add over 7,000 new US stocks and ETFs to its trading platform, integrating this service into its multi-asset platform portfolio. The company stated that this product, targeting overseas markets, will provide access to US stock trading with lower barriers to entry, further expanding the platform's coverage in traditional financial assets.
Open to non-US users
According to the company, this service will offer zero-commission stock trading to non-US users, supporting fractional share purchases starting from as low as $5. Binance Co-CEO Richard Teng stated that while the US stock market accounts for a significant portion of the global stock market, many overseas investors still face cost and procedural barriers when purchasing related assets.
The newly added product range includes not only individual stocks but also ETFs. Binance stated that this is not its first time introducing non-crypto assets; the platform previously offered derivatives related to gold, petrochemical products, and some pre-IPO shares.
bStocks to launch in the coming weeks
Alongside launching stock trading, Binance also announced follow-up plans called bStocks. According to the company, users will be able to convert a portion of their stock holdings into digital tokens and generate corresponding synthetic versions of assets on the BNB Chain.
Richard Teng stated that the service is expected to launch in the coming weeks. Compared to similar products launched by Kraken, Robinhood, and others in the past year, Binance says one feature of its solution is that it allows users to initiate their own tokenization process, rather than simply having the platform pre-provide tokenized products.
On-chain settlement and DeFi scenarios
One of the main attractions of tokenized stocks is that they can shorten the settlement process in traditional securities trading, which relies on intermediaries, to near real-time. In contrast, traditional US stock trading typically still requires a trading day or longer to complete final settlement.
This sector is heating up. Both the New York Stock Exchange and Nasdaq have stated their intention to introduce the technology. Binance stated that bStocks will connect traditional stock holdings with programmable, 24/7 on-chain assets, opening up possibilities for DeFi uses such as lending and liquidity provision.
