Binance founder Changpeng “CZ” Zhao said on Sept. 7 that initial public offerings “will move on chain,” as regulated exchanges and blockchain companies expand infrastructure for tokenized securities.
Summary
- CZ predicted IPOs will move on-chain but provided no timeline, structure or named issuer publicly.
- Tokenized stocks hold approximately $2.9 billion on-chain, according to current data published by RWA.xyz today.
- France’s ST Group raised €2.07 million through a fully tokenized IPO completed during April 2026.
- SEC staff says tokenizing securities does not alter registration, disclosure or investor-protection requirements under law.
- Nasdaq and NYSE rules permit eligible tokenized securities to trade alongside conventional versions under pilots.
Zhao offered no timeline, proposed structure or potential issuer in his brief statement. His comment was therefore a prediction rather than an announcement involving Binance or a confirmed offering.
Parts of the infrastructure needed to conduct an on-chain IPO are already operating. France completed a fully tokenized public offering in April, while Nasdaq and the New York Stock Exchange have established rules for trading eligible securities in tokenized form.
Market data also show growing demand for blockchain-based equities. Tokenized stocks currently represent about $2.9 billion in distributed value, according to the RWA.xyz dashboard. That figure was roughly 14% higher over the preceding month when Zhao made his statement.
On-chain IPOs have moved beyond the proposal stage
French aerospace and defense supplier ST Group completed a tokenized IPO through Paris-based Lightning Stock Exchange, or Lise, in April. The company raised €2.07 million by selling 113,525 shares at €18.25 each.
The transaction operated under the European Union’s Distributed Ledger Technology Pilot Regime. Legal adviser Clifford Chance described the offering as the world’s first fully tokenized IPO in its transaction record.
Unlike many tokenized-stock products, ST Group issued its equity through a blockchain-based market from the initial offering stage. Investors received regulated shares rather than tokens providing only synthetic price exposure.
Crypto.news previously reported that Lise planned to list ST Group through Europe’s first fully on-chain IPO. Completion of the transaction demonstrated that a company can conduct a primary offering through distributed-ledger infrastructure within an established securities regime.
Cantor Fitzgerald and Securitize are also developing regulated infrastructure for blockchain-based capital raising. The companies plan to support IPOs and follow-on offerings while retaining conventional underwriting, compliance and investor-protection processes.
Their partnership, as covered in July, seeks to bring public offerings onto regulated blockchain infrastructure. Neither company has identified the first external issuer that will use the system.
U.S. exchanges are adding tokenized trading rails
The U.S. market is moving through existing exchanges and clearing institutions. The SEC approved Nasdaq’s tokenized-securities pilot on March 18.
The approved order allows eligible participants to trade tokenized versions of selected Russell 1000 securities and major index-linked exchange-traded products.
Tokenized and conventional versions use the same Nasdaq order book. They carry the same ticker, CUSIP, price and shareholder rights. Participants can instruct the Depository Trust Company to settle eligible trades in tokenized form.
Nasdaq’s approved pilot keeps tokenized shares inside the national market system, rather than moving trading to an unrelated crypto venue.
The NYSE filed a similar rule change on April 9. Its SEC filing established a framework for eligible tokenized securities to trade alongside conventional shares under the DTC pilot.
These programs do not amount to native on-chain IPOs. They apply blockchain-based settlement to eligible securities already trading within existing market structures.
DTC conducted live production transactions involving about 40 firms on July 15. The company said those tests moved its tokenization service from development into production activity. A broader service launch is expected in October 2026, according to DTCC’s official update.
Tokenized shares do not always provide ownership
The term “tokenized stock” covers several structures with different legal rights. An issuer can place its official shareholder register on a blockchain, or a third party can issue a token backed by shares held with a custodian.
Another model provides synthetic exposure without transferring ownership in the underlying company. Holders of synthetic products may lack voting rights, dividends or claims against the referenced issuer.
The SEC explained these distinctions in a January statement. Staff divided tokenized securities into issuer-sponsored and third-party-sponsored structures, with the latter including custodial entitlements and synthetic instruments.
The agency said moving ownership records onto a blockchain does not alter the application of federal securities laws. Offers and sales must still be registered unless an exemption applies.
The statement was issued by SEC staff and is not a Commission rule. It carries no independent legal force, but it explains how three agency divisions currently view tokenized securities.
Investor rights remain a central issue. Transfer agents have urged regulators to favor issuer-backed structures, warning that third-party tokens may introduce bankruptcy exposure or provide weaker ownership rights. Crypto.news reported that industry groups asked the SEC to restrict third-party tokenized stocks over those concerns.
On-chain IPO growth still faces practical limits
Blockchain settlement could support fractional shares, programmable compliance and longer trading hours. It may also reduce reconciliation work by allowing participants to use a shared ownership record.
However, tokenization does not automatically eliminate underwriters, auditors, lawyers, transfer agents or regulated intermediaries. Those parties perform functions that extend beyond recording transactions.
Round-the-clock trading also requires continuous liquidity, market surveillance and cash settlement. A token may remain transferable when its underlying market is closed, but limited liquidity can create wider price differences and volatile order books.
Traditional exchanges are testing ways to address that problem. The London Stock Exchange and Kraken parent Payward plan to explore tokenized UK public equities. LSE 24 could support trading in xStocks during 2027, subject to regulatory approval.
In related coverage, the London Stock Exchange proposed bringing major UK-listed shares into the xStocks framework. The project remains under development and does not constitute a confirmed on-chain IPO.
The next measurable milestones are DTCC’s planned October launch, further SEC decisions and the first issuer using the Cantor-Securitize offering system. A large company choosing native blockchain issuance would provide stronger evidence for Zhao’s forecast.
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