Binance is considering restarting stock token trading, allowing investors to purchase fractional shares

According to Coindesk, Binance is considering restarting stock token trading. Stock tokens are digital representations of stocks, allowing investors to purchase fractional shares without needing to hold entire shares of Apple or Microsoft (these shares are held and settled on the blockchain) and reflect the price of the underlying asset in real-time.

Previously, Binance shut down similar products due to regulatory pressure. Additionally, OKX, Coinbase, and traditional exchanges like the New York Stock Exchange and Nasdaq are also exploring stock token issuance, indicating a resurgence of interest in stock tokenization across the financial industry. However, there are still many legal and regulatory hurdles, as pending cryptocurrency market structure legislation in the U.S. and existing securities regulations may slow down or restrict the launch of stock token products.