Binance and OKX To Enter TradFi With Tokenized Stocks

Core Viewpoint - Major crypto exchanges Binance and OKX are exploring the reintroduction of tokenized US stocks to diversify into real-world assets amid stagnant crypto trading volumes [1][4]. Group 1: Tokenized Stocks Initiative - Binance is considering relaunching tokenized stocks for non-US users, a product it previously tested in 2021 but abandoned due to regulatory challenges [2][3]. - The initial launch in April 2021 included stock tokens for major companies like Tesla, Microsoft, and Apple, issued by German broker CM-Equity AG [2]. - The service was discontinued in July 2021 under regulatory pressure from authorities such as Germany's BaFin and the UK's FCA, which viewed the offerings as unlicensed securities [3]. Group 2: Market Context and Motivations - Crypto exchanges are seeking new revenue streams due to persistent stagnation in trading volumes, with average daily spot volumes in January 2026 tracking 2% below December and 37% below November levels [5]. - Analysts indicate that crypto markets remain largely dormant, with volatility and trading volume near December's lows, suggesting a liquidity trap that amplifies risk for traders [6][7]. - The exploration of tokenized equities is seen as a "natural next step" for bridging traditional finance and crypto [4].