Binance is making another push to blur the line between digital assets and traditional markets. In an announcement Monday, the company said users will soon be able to trade more than 7,000 US stocks and exchange-traded funds (ETFs).
It also detailed a plan to allow customers to convert their holdings into tokenized, crypto-style digital assets, as part of what Binance describes as a major effort to transform it into a “high-end financial program.”
Binance Targets ‘Friction-Free’ Stock Trading
Speaking to Fortune, Binance’s chief operating officer Richard Teng revealed why the move is aimed primarily at customers outside the United States. Executive he said US stocks already make up half of the world’s market capitalization, but for many foreign investors, buying them can be expensive and fraught.
Binance’s solution, according to Teng, is to offer zero-commission trading to non-US users, along with the purchase of limited shares starting at $5, lowering the cost of capital and the complexity of participation.
Collaborative Reading
In operation, Binance said a new business activity it will be launched with the help of a broker called Nest Trading. In terms of custodial and debt settlement services, the New York company, Alpaca, is expected to oversee the security and support the payment of the company’s shares and operations.
Customers will be able to pay for purchases using stablecoins such as Circle’s USDC stablecoin or Tether’s USDT, as well as a choice of other digital currenciesincluding Binance’s BNB.
Binance also introduced an ambitious concept with a trading program: “bStocks.” The position of the company is that bStocks allows users to invest in their purchases.
Hyperliquid Can Feel Heat
In Teng’s explanation, this would work by creating a virtual, digital representation of certain stocks – which is achieved by converting the coins into tokens on Binance’s platform. BNB blockchain. The company says the service is expected to be available in the coming weeks.
While other major platforms have tried similar models over the past year, Binance says its approach can stand out in one important way.
Competitors such as Kraken and Robinhood have launched offerings in this space, but Binance says its bStocks process would be different because it would allow customers to start the token process themselves instead of relying on pre-established exchange methods.
Collaborative Reading
The announcement of the change has also sparked interest. At X (formerly Twitter), Zero Kyle’s expert they argued that the development could be a bad decentralized exchange (DEX) Hyperliquid (HYPE).
Kyle’s opinion was that although the increased availability may not be exactly “24/7 like” the Hyperliquid market in which other trading systems are designed, Binance should increase the competition and may lead to a war against the market.
The expert added that the news may not be “bad for the HYPE brand” in particular, but it could be “bad for the Hyperliquid exchange” due to increased competition.
Meanwhile, the exchange’s token, BNB, was trading at $692 at the time of writing. This marks the recovery of the crypto market on Monday, with the 2.3% decrease recorded so far.
Graphic design created by OpenArt; TradingView.com chart
