Binance opens 8,000+ US stocks to non-US users via stablecoins

On Monday, Binance made more than 8,000 US stocks and exchange-traded funds available to customers outside the United States. Customers can buy fractional shares starting at $5 with no trading commissions and may pay in stablecoins USDC or USDT, in BNB, or in selected other tokens.

Share purchases will be arranged through broker-dealer Nest Trading. Alpaca, a New York-based firm, will handle custody, dividend payments and corporate actions for those holdings.

Binance outlined a feature called bStocks that will let customers convert equities they buy into tokenized versions on BNB Chain. Users will be able to start the tokenization process themselves when bStocks launches in the coming weeks. Binance described the offering as providing “a native bridge from traditional stock ownership to programmable, always-on tokenized assets at a global scale,” and said it could enable on-chain access and potential decentralized finance uses such as lending and liquidity provision.

The exchange already offers derivatives tied to commodities and pre-IPO share trading. In 2021 Binance halted a prior stock token program after regulators raised concerns that those products might be unregistered securities.

Co-CEO Richard Teng noted that US-listed companies represent the majority of global equities and highlighted the costs and frictions many overseas investors face when trying to access those markets. Binance said the new service is intended to provide lower-cost access for its customers.

Other crypto platforms and financial firms have developed tokenized or blockchain-based versions of traditional assets and have expanded stock trading options for non-US users. Supporters of tokenization point to faster settlement; critics have warned tokenized equities could introduce new risks for markets and investors.

The offering is available only to users outside the United States. Market participants and regulators will watch bStocks and similar products as they launch to see how much trading moves on-chain and how authorities respond.