Binance CEO: Tokenization Nearing Market Turning Point

On May 21, Binance CEO Richard Teng wrote on X that tokenization is approaching a major turning point as clearer rules, expanding institutional access and new market infrastructure come together. He wrote, “Tokenization is getting closer to a major turning point,” and added, “The next 12–18 months could be defining.”

Regulators are moving toward operational rules expected in 2026. In the U.S., the CLARITY Act cleared the Senate Banking Committee on May 14. The measure aims to specify which digital assets fall under Securities and Exchange Commission oversight and which fall under the Commodity Futures Trading Commission. When tokens represent existing stocks, bonds or funds, they will be treated as securities on blockchain infrastructure.

Financial firms and market providers are linking tokenized products to capital-market systems. Examples include BlackRock’s BUIDL tokenized Treasury fund, Franklin Templeton’s blockchain-based fund administration and JPMorgan’s Kinexys platform. Goldman Sachs and BNY Mellon are building tokenized money-market infrastructure. A partnership between Securitize and Computershare aims to connect tokenized securities with traditional transfer-agent systems. The recent approval of spot bitcoin and ethereum ETFs has broadened access through brokerages and retirement accounts.

Banks and clearing firms are testing tokenized cash, collateral and Treasury instruments and building settlement pathways. On March 24, Bank of Montreal outlined plans to offer tokenized cash using CME Group’s permissioned network on Google Cloud Universal Ledger. JPMorgan has expanded tokenized collateral transfers and tokenized repo operations. Citi is developing tokenized deposit systems, and HSBC has extended tokenized gold and deposit pilots in Hong Kong.

Core market utilities are creating interfaces to manage tokenized securities. Nasdaq received regulator approval for a rule change allowing certain securities to trade in tokenized form under defined conditions. The Depository Trust & Clearing Corporation is developing a DTC Tokenization Service to handle real-world assets in a regulated environment. Intercontinental Exchange is working with Citigroup, BNY Mellon and other institutions on tokenized deposit systems tied to clearinghouses.

Teng outlined four factors shaping the market: regulation, institutional infrastructure, real-world use and settlement integration. Market participants expect early deployments to use permissioned blockchains that connect to regulated banking, exchange, custody, clearing and transfer systems.