Crypto exchange Binance has enhanced its application programming interface (API), signaling the platform’s upcoming stock trading features.
According to Binance’s changelog, the exchange added three new API endpoints on Thursday, including one with a URL that incorporates stock/contract, enabling users to “sign [a] TradFi-Perps agreement contract.” The other two endpoints introduced on the same day let users access “trading session schedules for a one-week period” or “current trading session information.”
This indicates Binance’s intention to introduce perpetual futures trading. The existing trading schedule endpoints imply trading will occur in sessions, similar to traditional finance, rather than adhering to crypto’s constant trading model.
This development comes after Binance’s brief foray into tokenized stocks in 2021, which was shortly halted due to regulatory scrutiny following their announcement in late April that year.
Although Binance acknowledged Cointelegraph’s request for a comment, they had not responded by the time of publication.
Related: Ondo wins Liechtenstein approval to offer tokenized stocks in Europe
Tokenized stocks are becoming popular
Binance’s initiative follows a wave of similar actions from both traditional and crypto finance sectors, moving stock tokenization towards the mainstream. Recent reports suggest that US-based crypto exchange Coinbase is poised to launch its own tokenized stocks and prediction markets.
However, not everyone supports the rollout of stock tokenization. Market maker Citadel Securities drew attention earlier this month by advocating for the US Securities and Exchange Commission to tighten regulations on tokenized stock trading on decentralized finance (DeFi) platforms.
Citadel stated that DeFi developers, smart-contract coders, and self-custody wallet providers should not receive “broad exemptive relief” for trading tokenized US equities. They argued that DeFi platforms could be classified as an “exchange” or “broker-dealer” and should be subjected to securities laws.
Citadel also warned that allowing these platforms to operate without regulations “would create two separate regulatory regimes for the trading of the same security.” Additionally, the World Federation of Exchanges (WFE) expressed concerns in late November, arguing against broad regulatory relief for companies launching tokenized stock offerings.
The WFE acknowledged that tokenization “is likely a natural evolution in capital markets” and supports innovation, yet insists it should be carried out responsibly to protect investors and market integrity.
This follows the introduction of tokenized stocks on both centralized crypto exchanges and within the DeFi ecosystem, with over 60 tokenized stocks launching on Solana-based platforms and on exchanges like Kraken and Bybit by the end of June.
Related: Robinhood tokenizes nearly 500 US stocks, ETFs on Arbitrum for EU users
Traditional finance’s varied perspectives
Some players in traditional finance appear to be adopting a “if you can’t beat them, join them” mindset.
Last month, Nasdaq’s head of digital assets strategy, Matt Savarese, emphasized the stock exchange’s priority in attaining SEC approval for its proposal to provide tokenized versions of its listed stocks.
The race heated up after reports emerged that the SEC is devising a strategy to permit blockchain-registered stocks to trade on cryptocurrency exchanges by the end of September.
SEC Chair Paul Atkins recently referred to tokenization as an “innovation” that the agency should promote rather than restrict. The SEC issued a “no-action” letter to a subsidiary of the Depository Trust and Clearing Corporation specializing in securities tokenization, signaling the regulator’s intention to support the company in creating a new tokens market for securities.
