Binance Launches Direct Trading of U.S.-Listed Stock

@Binance has officially rolled out direct trading for more than 7,000 U.S.-listed stocks and ETFs, marking a significant shift from synthetic derivatives to actual equity ownership for its international user base.

What the Service Offers

The feature is accessible through Binance's standard spot trading interface, with fractional share purchases available from as little as $5. Co-CEO Richard Teng has noted that U.S. stocks represent well over half of global equities market capitalisation, yet overseas investors still face considerable cost and friction when buying them. Binance aims to address this by offering zero-commission stock trading to non-U.S. customers.

Settlement is supported in major digital assets, including $USDT, $USDC, $U, $USD1, and $BNB. Trades will be routed through broker-dealer Nest Trading, while New York-based Alpaca will handle custody, dividend payments, and corporate actions. Trading is available 24/5 during U.S. market hours.

Other exchanges, including Kraken and Robinhood, have launched similar offerings over the past year, though Binance's version is potentially unique in that it promises to let customers initiate the tokenisation process themselves.

A Step Toward a Crypto-Finance Super App

Alongside the stock-trading launch, Binance has announced plans to allow customers to convert the stocks they hold into crypto-style digital assets, as part of its broader ambition to become a multi-asset financial super app. This initiative, called bStocks, would convert shares bought on the platform into digital tokens on BNB Chain.

Tokenised stocks offer faster settlement than traditional equity trades. Conventional stock transactions can take more than a day to settle through Wall Street intermediaries, while blockchain-based trades can be completed almost instantly. Binance says bStocks will provide a native bridge between traditional share ownership and programmable tokenised assets that trade around the clock, and could open the way for decentralised finance applications such as lending and liquidity provision.

The move is part of a wider convergence between crypto platforms and traditional finance. While some have raised concerns that tokenised stocks could create risks or uncertainty for the U.S. equities market, the concept is gaining traction, with both the New York Stock Exchange and Nasdaq having announced plans to incorporate the technology.

Sources:
Fortune: Binance adds U.S. stocks in super app push, plans to launch tokenized shares
CoinDesk: Binance revives tokenized stocks trading with Ondo Finance