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Binance Founder CZ Predicts IPOs Will Move On-Chain

Created at 8 Sep · 6:55 AM1 source↑ Market-relevant
IN SHORT

Binance founder Changpeng Zhao stated that initial public offerings (IPOs) will transition to blockchain, citing growing demand for tokenized stocks and pre-IPO contracts. This shift could enable greater global retail participation and faster settlement.

Key Numbers

$30 billioncumulative trading volume for Binance's bStocks

Who's Involved

Changpeng Zhao
Binance founder predicting IPOs will move on-chain
SEC
U.S. regulator pushing for blockchain-based securities
Securitize
Platform enabling on-chain IPOs and tokenized securities
Ondo Finance
Company tokenizing stock listings on blockchains

↳ Why This Matters

The potential shift of IPOs to blockchain could democratize access to public markets, increase liquidity, and streamline the issuance and trading of securities, fundamentally altering capital markets.

Key facts

  • Binance founder Changpeng Zhao believes IPOs will move onto blockchain technology.
  • The SEC is advancing rules for tokenized securities and transfer agents.
  • Platforms such as Securitize and Ondo Finance are actively developing on-chain IPO infrastructure.
  • Demand for tokenized stocks and pre-IPO perpetual contracts is increasing.
  • On-chain IPOs are expected to offer global retail access, faster settlement, and 24/7 trading.

Binance founder Changpeng Zhao has predicted that initial public offerings (IPOs) will transition to blockchain technology, signaling a significant integration between traditional finance and the cryptocurrency industry. Zhao noted the increasing demand for tokenized stocks and pre-IPO perpetual contracts, suggesting that the infrastructure for such a shift is already being developed.

The U.S. Securities and Exchange Commission (SEC) is also contributing to this trend by proposing rule changes for transfer agents to accommodate the use of blockchain in handling tokenized securities. This regulatory movement aligns with the growing interest in blockchain-based financial instruments.

Several platforms are actively building the necessary infrastructure. Securitize has launched on Solana and Avalanche, partnering with Cantor Fitzgerald to facilitate IPOs and follow-on offerings for public companies using tokenized securities. Ondo Finance is also tokenizing stock listings on various blockchains.

Proponents of on-chain IPOs believe they will enable broader global retail investor participation, facilitate near-instantaneous settlement, offer 24/7 trading availability, and reduce the reliance on traditional underwriting processes.

Frequently asked questions

Changpeng Zhao predicted that initial public offerings (IPOs) will move onto blockchain technology.

The SEC has proposed rule changes for transfer agents to reflect their use of blockchain in handling tokenized securities.

Securitize and Ondo Finance are developing platforms and partnerships to facilitate on-chain IPOs and tokenized stock offerings.

Benefits include global retail participation, near-instant settlement, 24/7 availability, and reduced reliance on traditional underwriters.

What Happens Next

01Further SEC proposals on tokenized securities are expected.
02More platforms are likely to develop infrastructure for on-chain IPOs.
03Increased adoption of tokenized stocks by public companies is anticipated.

How It Developed

Binance founder Changpeng Zhao predicted IPOs will shift to blockchain.
The SEC has proposed rule changes for transfer agents regarding tokenized securities.
Platforms like Securitize and Ondo Finance are developing infrastructure for on-chain IPOs and tokenized stocks.
Companies believe on-chain IPOs will enhance global retail participation and settlement speed.

Sources

T1
Binance Founder Changpeng “CZ” Zhao Says “IPOs Will Move On-Chain”CoinGape

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