Binance is considering restarting tokenized stock trading, allowing investors to purchase a portion of the shares.

PANews reported on January 24th that, according to Coindesk, Binance is considering relaunching stock tokenization trading. Stock tokens are digital representations of stocks, allowing investors to purchase partial shares (held and settled on the blockchain) instead of owning all shares of Apple or Microsoft, reflecting the price of the underlying asset in real time. Binance previously shut down a similar product in 2021 due to regulatory pressure.

In addition, OKX, Coinbase, and traditional exchanges such as the New York Stock Exchange and Nasdaq are also exploring stock tokenization, indicating a resurgence of interest in stock tokenization across the financial industry.

However, numerous legal and regulatory hurdles remain, as pending cryptocurrency market structure legislation and existing securities regulations in the United States could slow down or limit the rollout of equity tokenized products.