Tokenized Equities Gain Traction on Binance as New Users Flock to Platform

Binance has revealed that a significant portion of its users who have traded tokenized stocks through its bStocks product had never engaged with equities on the exchange before.

According to Binance, four in ten bStocks users had their first-ever exposure to equities via the platform's traditional finance products. The exchange has been building out routes into traditional market exposures, including pre-IPO exposure through perpetual futures and direct access to US-listed stocks.

bStock listings grew from 5 to 36 within a month, with combined market capitalization across tokens passing $300 million over the same period. Binance cited SPCX, a recent pre-IPO listing of SpaceX stock on the platform, as an example: 8.6% of users who traded its pre-IPO perpetual contract went on to buy the bStock version, compared to 0.6% who moved into direct stocks.

The exchange says that one reason for the popularity of tokenized equities is their ease of use, which allows users to make certain moves more easily than on traditional platforms. Additionally, during regular US market hours, bStocks and direct stocks split equity-linked volume on Binance almost evenly, but it goes up to 58% once the market closes.