On-chain IPOs could reshape capital markets, according to Binance founder Changpeng Zhao. CZ said traditional public offerings would inevitably move onto blockchain networks as tokenized assets gain traction.
Binance’s bStocks platform exceeded $500 million in market capitalization on July 29, seven weeks after its June 11 launch. It lists 56 tokens, led by SNDKB, SPCXB, MUB, CRCLB, and SOXLB.
Described as the world’s fastest-growing tokenized equity product, bStocks had little presence in May. By July, it controlled 27% of tokenized-equity capitalization. Ondo’s dominance fell from 75% to 45%.
On-Chain IPOs Could Reshape Capital Raising
Traditional IPOs depend on banks, exchanges, clearing houses, brokers, and intermediaries. The process can take weeks or months.
Blockchain models could tokenize shares, while smart contracts automate settlement, compliance, and corporate actions. Tokenized securities could widen access beyond brokerages.
Issuers would still face securities laws and eligibility rules. Platforms would need investor identification, custody, market surveillance, and transfer restrictions.
Tokenized Equity Trading Volume Hits Records
CZ’s post drew mostly positive reactions on X. One commenter wrote, “When IPOs move onto the blockchain, the rules of the game in the traditional primary market are being rewritten. Innovation is worth watching, but there’s still a long way to go before widespread adoption.”
On-chain spot trading volume reached about $5.3 billion in May, a record and a 44% monthly increase. Tokenized-stock perpetual futures reached about $34 billion on centralized exchanges during the same period.
Solana surpassed $10 billion in total share token transfer volume in June. Traditional equity markets remain much larger, processing about $1.1 trillion in combined daily volume based on 2025 Cboe benchmarks.
LSEG Advances Tokenized UK Share Plans
London Stock Exchange Group plans tokenized UK equities to lower barriers for international investors seeking London-listed shares. It is working with Payward, Kraken’s parent, to evaluate ledger-based settlement and trading systems.
LSEG said in February it was building a blockchain trading system. It plans to convert regular UK-listed shares into digital tokens for cryptocurrency investors.
Supporters say tokenization could enable 24-hour trading, near-instant settlement, improved liquidity, and lower costs. The World Federation of Exchanges previously urged regulators to address investor risks and market integrity.
Julia Hoggett, CEO of the London Stock Exchange and head of digital and securities markets at LSEG, said, “Tokenization has the potential to change how investors access and how issuers use financial markets, but it must develop in a way that preserves the trust, rights, and role of regulated markets.”
LSEG plans to list xStocks on LSE 24 in 2027, subject to regulatory approval. Deutsche Boerse said in April it acquired a $200 million Kraken stake, representing 1.5% on a fully diluted basis.
