Binance’s founder Changpeng “CZ” Zhao has responded to the New York Stock Exchange’s (NYSE) plan to launch a tokenized securities platform. Similar crypto stakeholders, such as Ripple’s executive Reece Merrick, have also highlighted the potential scale of this move for the industry.
Just a few hours ago, the NYSE stated that it is building a venue using blockchain technology to enable trading in tokenized stocks and exchange-traded funds around the clock.
The NYSE, which Intercontinental Exchange Inc. owns, plans to use its existing technology for matching buyers and sellers, combined with private blockchain networks, to facilitate real-time trading of tokenized securities, according to executives.
CZ’s comments also follow a fee update posted on Binance, where the exchange stated that the withdrawal fee for direct USD transfers via SWIFT bank transfer was reduced from $60 to $25 per transaction, effective immediately for both retail and corporate users. The same notice stated that USD deposits via SWIFT bank transfer remain fee-free.
NYSE’s tokenized securities push set to enhance crypto trading
The founder of Binance described the stock exchange’s plan to build a tokenized securities platform as bullish for crypto and crypto exchanges in an X post. Earlier in the day, the NYSE said it was building a platform for trading and on-chain settlement of tokenized securities. The platform also said it plans to obtain regulatory approvals.
The platform will facilitate 24/7 trading of stocks and equities, including crypto stocks such as Circle’s CRCL, with instant settlement as indicated in the press release. The platform will also support stablecoin-based funding, enabling investors to trade these assets with stablecoins.
Additionally, NYSE discussed the potential for multi-chain cooperation, stating that its blockchain-based post-trade systems will be equipped to support multiple chains for settlement and custody.
This news follows revelations just months ago that the SEC was considering allowing on-chain stock trading alongside crypto assets. Cryptopolitan had also reported in December that the SEC had advanced proceedings to enable the launch of tokenized securities trading on Nasdaq. The Nasdaq’s action will also ensure that other crypto stocks, such as Coinbase’s COIN, Strategy’s MSTR, and Robinhood’s HOOD, are accessible for 24-hour trading.
Just like Binance’s founder CZ, market expert Adam Livingston described the NYSE’s announcement as being bullish. Specifically, he stated that Bitcoin buying will increase “big time” as a result.
Industry leaders say NYSE’s tokenized stocks could revolutionize trading
NYSE’s tokenization strategy sounded a bit “big” to Ripple executive Reece Merrick in an X post. The news followed his explanation to reporters that the tokenized securities platform will enable 24/7 trading of stocks and ETFs, fractional share trading, and immediate settlement through tokenized capital.
Alex Thorn, the Galaxy Digital Head of Research, also called the move a “big and important step.” He noted that self-custody, blockchain settlement, p2p transfer, and access to DeFi are all factors that are a huge lift for each of these tokenized stocks.
Thorn continued to say that to offer tokenized equity securities, meaningful growth is access to DeFi. Thorn added that clearing firms and exchanges interacting with tokenized stocks is an important “closing of the loop,”. Notably, top crypto exchanges like Coinbase are also working to offer tokenized securities. Asked about their thoughts on the CLARITY Act, Robinhood CEO Vlad Tenev added that stock tokens are already accessible to their customers in the European Union (EU) but not in their home market. As such, he said, it was time for the US to take the lead in crypto policy.
