Binance's Chief Executive Officer Richard Teng revealed that more than 40% of U.S. equity trades on the platform occur outside traditional market hours. Speaking at Token2049 in Singapore, Teng noted that the trend highlights the increasing global appetite for continuous trading in tokenized assets.
Global Investors Seek 24/7 Trading Options
For the U.S. stocks that we trade on a tokenized basis, close to more than 40 plus percent of the trading take place outside of U.S. trading hours.
Richard Teng, CEO of Binance
- More than 330 million global users on Binance.
- Approximately 7,000 U.S. stocks listed, with 1,000 available in tokenized format.
Traditional U.S. stock markets operate for around six to eight hours daily, leaving gaps in trading opportunities. This limitation has pushed investors, particularly from different time zones, to seek alternative trading solutions. Teng emphasized that tokenization allows for immediate responses to market movements, removing the constraints of conventional trading hours.
Challenges for Traditional Institutions
Despite Nasdaq's plans to extend trading hours, structural limitations hinder traditional institutions from achieving true 24/7 trading. Teng explained that legacy systems and existing broker-dealer relationships make it difficult to provide uninterrupted market access.
Expansion into Pre-IPO Trading
Binance is also venturing into pre-initial public offering (IPO) contracts for notable private companies like SpaceX and Anthropic. Teng pointed out that demand for pre-IPO trading has surged, yet challenges such as information asymmetry remain a concern.
Regulatory Landscape and Institutional Adoption
Teng highlighted the importance of regulatory clarity for fostering institutional investment. He noted that the introduction of U.S. stablecoin legislation has already led to increased institutional involvement in the cryptocurrency space.
He advocates for comprehensive market rules, like the proposed Clarity Act, to support growth and ensure that the U.S. maintains its competitive edge in the evolving financial landscape.