Major crypto exchanges Binance and OKX are considering reintroducing tokenized US stocks to capture traditional finance yields amid stagnant crypto trading volumes. Binance previously tested this product in 2021 but faced regulatory hurdles, leading to its discontinuation. The move aims to compete in the growing tokenized equities market.

Despite previous regulatory challenges, Binance and OKX are exploring reviving tokenized stocks to attract crypto holders seeking equity exposure without leaving the ecosystem. The market for tokenized stocks is small but growing, with total value around $912 million and increasing transfer volumes. Both exchanges are positioning themselves to challenge Robinhood in global markets.

Analysts note that traditional stock exchanges like NYSE and Nasdaq are also seeking to launch regulated on-chain stock platforms, potentially competing with offshore crypto-led models. Robinhood has already captured a significant share in the EU with its tokenized US stocks and ETFs, offering zero commissions, 24/5 trading, and a user-friendly app interface.

If Binance and OKX proceed with tokenized stocks, it could attract capital back into crypto platforms and bridge the gap between traditional finance and crypto. Success will depend on navigating global regulations, ensuring liquidity, and building trust among users after past shutdowns. The move could accelerate adoption among their crypto-native audience and challenge existing players in the market.

Read more at Yahoo Finance: Binance and OKX To Enter TradFi With Tokenized Stocks