The previous attempt was in 2021. In July of that year, Binance issued a brief statement on its website: customers would no longer be able to purchase stock-linked digital tokens. “Stock tokens” would no longer be available on Binance.com effective immediately, and support for any stock tokens would end after October. On the same day, Italy’s market regulator warned that Binance was not authorized to provide investment services in Italy. Earlier, in April, Germany’s financial regulator had indicated that Binance could face fines for offering “stock tokens” without publishing a prospectus.
Five years later, Binance is back. But what is different this time?
I. Regulatory Path: From “Gray Area” to Licensed Operations
In 2021, the core issue facing Binance’s stock tokens was regulatory ambiguity. These tokens were labeled as “stock tokens,” but whether they were securities, derivatives, or other financial instruments lacked clear legal definition. Binance provided services across multiple jurisdictions without corresponding licenses, and regulatory warnings quickly followed.
This time, the situation is entirely different.
Ondo’s tokenized stocks and ETFs are explicitly classified as “structured products” under the regulatory framework of the Abu Dhabi Financial Services Regulatory Authority (FSRA). Binance offers these products through trading on an FSRA-regulated multilateral trading facility. This provides a clear regulatory anchor: the jurisdiction, the applicable legal framework, and the supervising authority are all explicitly defined.
At the same time, the issuance of Ondo’s tokenized securities itself follows a comprehensive compliance structure. In Liechtenstein, the relevant prospectus has been approved by the Financial Market Authority. In the European Union, the products are offered to both professional and retail investors with approved prospectuses and key information documents. Outside the European Economic Area, access is strictly restricted for U.S. and U.K. users.
From “gray area” operations to licensed business, this is the first major difference in Binance’s return to tokenized stocks.
II. Product Architecture Evolution: From Synthetic Stocks to Asset-Backed Securities
In 2021, Binance’s stock tokens were essentially synthetic assets. Users did not purchase actual shares but derivatives linked to stock prices. While this structure was technically easy to implement, it had clear weaknesses: no real asset backing, unclear redemption mechanisms, and ambiguous legal rights.
Ondo’s product architecture is fundamentally different. It adopts a “custody-backed model”: underlying securities are actually held by a U.S.-registered broker, and on-chain tokens maintain a 1:1 peg with the underlying assets through minting and redemption mechanisms. This means token holders theoretically have redemption rights to the underlying assets, subject to KYC and compliance procedures.
Since its launch in September 2025, the Ondo Global Markets platform has surpassed $550 million in total value locked and accumulated over $11 billion in trading volume, with tens of thousands of non-U.S. users. By January 2026, Ondo’s overall TVL exceeded $2.5 billion, making it a leading platform in tokenized U.S. Treasuries and equities.
From “synthetic assets” to “real asset backing,” this marks a fundamental shift in product architecture.
III. Competitive Landscape Shift: Coinbase Opens Stock Trading on the Same Day
February 24 saw another significant development.
On the same day, Coinbase opened stock and ETF trading to all U.S. users. Within a single app, users can trade thousands of stocks and ETFs five days a week, 24 hours a day, with zero commissions, fractional share support, and instant funding in USD or USDC. Coinbase has also partnered with Yahoo Finance, allowing users to execute trades directly from research pages.
Two of the world’s leading crypto exchanges releasing major “crypto + traditional asset” initiatives on the same day is no coincidence.
Coinbase follows a “direct access to traditional markets” path: users remain within the Coinbase app but trade real stocks settled through traditional clearing systems. Binance takes the “tokenization” route: users trade on-chain tokens backed by real assets, structured as financial products. Different paths, same destination: crypto exchanges are evolving into one-stop platforms where users can manage both digital and traditional assets.
IV. Target User Positioning: Non-U.S. Markets and Regulatory Arbitrage
A key detail deserves attention: Ondo’s tokenized stocks and ETFs are not available to U.S. users.
This is intentional. U.S. securities law is extremely stringent. The Securities Act of 1933 requires securities offerings to be registered or exempt. Since Ondo’s tokens are not registered in the U.S., they cannot be offered to U.S. persons.
This means the Binance–Ondo collaboration targets hundreds of millions of users outside the United States. Investors in the EU, Middle East, and Asia can gain economic exposure to U.S. stocks through Binance without opening a U.S. brokerage account, handling foreign exchange conversion, or waiting for T+1 settlement. On-chain transfers operate year-round, while minting and redemption windows align with traditional market hours.
This represents a classic form of regulatory arbitrage: establishing business hubs in relatively open jurisdictions while strictly restricting access in tightly regulated markets. Abu Dhabi, Liechtenstein, Singapore, and Hong Kong are emerging as early liquidity centers for tokenized securities.
V. What Changed Over Five Years
Between 2021 and 2026, several key developments reshaped the tokenized stock sector.
First, regulatory frameworks have become clearer. The FSRA’s classification of structured products, Liechtenstein’s prospectus approvals, and the EU’s tiered investor access models provide compliance templates for tokenized securities.
Second, custody and redemption mechanisms have matured. Ondo’s “broker custody + on-chain token” model has been validated by the market. With $550 million TVL, $11 billion cumulative trading volume, and tens of thousands of users, the data demonstrates genuine demand.
Third, mainstream financial institutions have entered the field. Nasdaq submitted an application to the SEC in 2025 seeking approval to list tokenized stocks. The New York Stock Exchange announced plans in January 2026 to develop a tokenized stock and ETF trading platform. Wall Street is no longer merely observing.
Fourth, crypto exchanges are undergoing strategic transformation. The synchronized actions of Binance and Coinbase signal a shift from “pure crypto trading platforms” to “multi-asset platforms.” Coinbase aims to enable users to manage both cryptocurrencies and stocks within a single app. Binance, through tokenized securities, provides on-chain exposure to U.S. equities for hundreds of millions of users.
Conclusion
On February 24, 2026, Binance announced the launch of Ondo tokenized securities. On the same day, Coinbase opened stock trading to all U.S. users.
Read together, these two developments reveal a broader shift: the boundaries of crypto exchanges are expanding. They are no longer content with being marketplaces for Bitcoin and Ethereum alone but are positioning themselves as gateways for managing all forms of assets—whether crypto-native or traditional.
Five years ago, Binance exited this sector under regulatory pressure. Five years later, it returns with a clear regulatory anchor, a mature asset-backed architecture, and a defined target user base.
This time, it may not leave so quickly.
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