Crypto exchanges move into century-old retail brokerage market with 24/7 trading and stablecoin settlement
Binance, Kraken, Bybit, and Gemini are adding US stocks, ETFs, and tokenized equities to their crypto trading platforms, directly challenging the retail brokerage model that Wall Street has controlled for generations. The moves enable round-the-clock trading with stablecoin settlement and self-custody withdrawal, features traditional brokerages cannot offer.
Binance launched direct access to more than 7,000 US stocks and ETFs alongside bStocks, a tokenized product offering 1:1 economic exposure to selected US equities. The products settle in stablecoins, can be withdrawn to self-custody wallets, and trade 24/7 on Binance Spot. Binance says bStocks are not stocks or shares and do not allow holders to own the listed company’s underlying shares directly.
First-week data from Binance reveals the demographic reach of crypto-native stock trading. Users in emerging markets accounted for over 80% of trading volume. Around 39% of trades were under $100, and roughly 25% of stock users were under 25. Binance Research projects crypto exchanges could channel 300 million new users into global equities by 2031, bringing an incremental $2 trillion in capital.
Kraken’s xStocks reached 100 fully backed tokenized US stocks and ETFs, surpassing $25 billion in transaction volume since June 2025. The platform is targeting 500+ listings by the end of 2026. Kraken says xStocks do not confer ownership, though account balances may adjust to reflect dividends. The exchange also opened access to the SpaceX IPO for clients in more than 110 countries via xStocks.
Bybit announced tokenized IPO access starting with SpaceX. Spot trading for the SpaceX tokenized IPO opened on June 12, 2025. Gemini allows customers in eligible European countries to trade Dinari dShares, tokenized stocks backed 1:1 by corresponding US equities, with zero trading fees and 24/7 availability.
Robinhood’s EU product page describes its stock tokens as derivative contracts priced by reference to the underlying security, granting no rights to the underlying security. This legal structure mirrors the approach taken by crypto exchanges, which position tokenized equities as derivatives rather than direct ownership claims.
Regulatory clarity is emerging. The NYSE announced a tokenized securities platform in January 2026 designed for 24/7 trading, fractional shares, and immediate settlement. In January 2026, the SEC staff issued a statement distinguishing issuer-sponsored and third-party tokenized securities. The SEC approved Nasdaq’s proposal for tokenized Russell 1000 stocks and major index ETFs in March 2026.
Wall Street institutions are preparing for tokenized equity growth. Citi projects $5.5 trillion in tokenized assets by 2030 in its base case, with $2.6 trillion in US equities. The bull case reaches $8.2 trillion in tokenized assets and $3.9 trillion in US equities. Even the bear case assumes $2.7 trillion in tokenized assets. The global equity market cap stood at $126.7 trillion in 2024. Goldman Sachs projects $160 billion in US IPO proceeds for 2026.
The entry of crypto exchanges into stock trading represents a structural shift in how retail investors access equities. Crypto platforms offer features traditional brokerages do not: 24/7 trading, stablecoin settlement, self-custody options, and access to fractional shares and IPOs at lower minimum investment thresholds. The 39% share of Binance stock trades under $100 suggests demand for micro-investment access.
The World Federation of Exchanges, SIFMA, and the Depository Trust Company have not yet issued coordinated guidance on how tokenized equities integrate with traditional market infrastructure. Regulatory arbitrage between jurisdictions may accelerate adoption, particularly in emerging markets where traditional brokerage access remains limited.
FAQ
Do tokenized stocks on crypto exchanges give me ownership of the company?
No. Binance, Kraken, Robinhood, and other platforms explicitly state that tokenized equities are not shares and do not confer ownership rights. They are derivative contracts or economic exposure products that track the underlying security’s price. Kraken notes that account balances may adjust to reflect dividends, but this does not equal share ownership.
Can I withdraw tokenized stocks to my own wallet?
Yes, on platforms like Binance. bStocks can be withdrawn to self-custody wallets and trade 24/7 on Binance Spot. Other platforms may have different policies. Verify your exchange’s terms before trading.
What is the regulatory status of tokenized equities?
The SEC staff issued guidance in January 2026 distinguishing issuer-sponsored and third-party tokenized securities. The SEC approved Nasdaq’s proposal for tokenized Russell 1000 stocks and major index ETFs in March 2026. The NYSE announced its own tokenized securities platform in January 2026. Regulation is still developing.
