Binance has suspended its tokenized stock trading feature, but Bitfinex is launching an exchange dedicated to trading them.
Bitfinex launches the Bitfinex Securities exchange
Cryptocurrency exchange Bitfinex is entering the world of traditional finance after announcing the launch of its Bitfinex Securities platform earlier today. The Bitfinex Securities exchange will allow users to trade tokenized stocks and bonds.
Bitfinex Securities CTO Paolo Ardoino revealed this to The Block earlier today. He stated that “We are basically trying to eat the lunch of London Stock Exchange and other traditional stock exchanges.”
The Bitfinex Securities platform will make it possible for small and medium-sized companies to list their tokenized equities, bonds, or funds and raise capital. Users of the securities exchange will now be able to invest in, and trade tokenized securities.
According to Ardoino, the Bitfinex Securities platform differs from the stock token trading service offered by crypto exchanges like FTX and Bittrex. He stated that the exchanges list tokens of stocks that are already public while the Bitfinex Securities will list equities, bonds, or funds of private companies that are looking to go public through a tokenized issue.
Regulators are shining their light on the crypto market
Regulatory agencies are shining their light on the cryptocurrency market as it continues to grow. The regulatory pressure made Binance discontinue its tokenized stock trading feature. The regulatory agencies such as the FCA and SEC are seeking more power and resources to properly regulate the crypto market.