Binance: Crypto exchanges could channel $5 trillion into stocks

Binance Research projects crypto exchanges could channel as much as $5 trillion of fresh equity capital into global markets over the next five years. The report found about 93% of Binance’s stock-trading users are based in emerging markets.

The report points to product features that reduce barriers to equity investment: fractional shares, commission-free access, low minimums for trades and settlement in stablecoins. Binance has expanded stock listings to global users and offers fractional trades starting at $5, the report notes.

Trades settled in stablecoins can occur outside standard market hours. The report says that appeals to retail users in countries where opening a conventional brokerage account requires paperwork, minimum balances and limited access to U.S. securities.

Binance Research estimates exchanges could onboard roughly 300 million new equity investors from emerging markets if the model scales. The report frames exchanges as alternative distribution channels that combine crypto payment rails with traditional equities.

Regulators in multiple jurisdictions have raised questions about tokenized stock products. Issues cited include investor protections, custody arrangements and whether stablecoin-based settlement complies with existing securities rules. Binance previously withdrew stock-token services in Hong Kong after regulatory pressure.

Industry leaders have expressed expectations about tokenized equities. Coinbase CEO Brian Armstrong predicted tokenized stocks will be “huge” in coming years. The tokenized equity market recently exceeded $1.4 billion in reported size.

Binance Research warns the $5 trillion projection depends on regulators permitting expansion, sustained demand from emerging markets and the development of durable trust in stablecoin settlement. Analysts note trading volumes have been uneven and concentration around a small number of exchanges raises oversight concerns.

Binance is focusing growth efforts on regions typically underserved by global brokers. The report limits its forecast to five years and ties outcomes to regulatory and market developments.