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Binance Prepares to Relaunch Stock Trading with New API Features
Binance, the world’s largest crypto exchange, is signaling a potential return to stock trading after introducing new features in its application programming interface (API). The recent update includes three new API endpoints, one of which — featuring a URL with stock/contract — enables users to sign a TradFi-Perps agreement contract. The other two endpoints allow users to query trading session schedules for a week or current session information, suggesting that future trading may follow traditional finance-style sessions rather than crypto’s 24/7 market rhythm.
A Second Attempt at Tokenized Stocks
This move comes years after Binance’s initial foray into tokenized stocks in 2021, which was short-lived. The first launch saw sales halted just months after debuting, following regulatory scrutiny. Binance has not yet commented on the latest developments.
Other exchanges are taking note. Reports indicate that Coinbase is reportedly days away from launching tokenized stocks and prediction markets, highlighting growing momentum for stock tokenization in crypto.
Regulatory Spotlight on Tokenization
Despite excitement, some in traditional finance urge caution. Citadel Securities recently recommended that the US SEC tighten rules on tokenized stock trading within DeFi platforms, arguing that developers and self-custody providers should not receive broad regulatory exemptions. The concern is that unregulated trading could create dual regulatory regimes for the same security.
Similarly, the World Federation of Exchanges (WFE) has stressed that while tokenization represents a natural and pro-innovation evolution in capital markets, it must be implemented responsibly, without jeopardizing investor protection or market integrity.
Bridging Crypto and TradFi
Tokenized stocks have already proliferated beyond centralized exchanges, appearing on Solana-based DeFi platforms as well as exchanges like Kraken and Bybit. Traditional players are also engaging: Nasdaq is prioritizing SEC approval for tokenized versions of its listed stocks, and the SEC has issued a no-action letter to a firm specializing in securities tokenization, signaling regulatory openness.
With Binance’s API updates and renewed interest from both crypto and traditional finance, tokenized stocks appear poised for a comeback in 2025, blending the worlds of crypto innovation and traditional securities markets.
