YZi Labs-backed BounceBit joining tokenized stock trend in Q4

BounceBit, a company backed by Binance-affiliated YZi Labs, said on Wednesday it will offer users tokenized stocks by the fourth quarter.

"The idea is simple: take real-world public market assets and make them instantly accessible onchain," BounceBit said in a post to X. "Coverage will include securities from four major stock markets: United States, Europe, Hong Kong and Japan."

BounceBit follows Robinhood, this week, unveiling tokenized stock trading in the EU as part of a larger trend of platforms offering traders equity investments onchain, a relatively untapped corner of the real-world asset (RWA) sector that many believe possesses huge growth potential.

Some companies already offer non-U.S. traders the means to invest in digital tokens that track popular stocks like Tesla, Apple, and Nvidia. Crypto exchange Kraken said in May it would soon be offering onchain versions of popular U.S. equities.

Kraken co-CEO Arjun Sethi told The Block in April that the tokenized equity market will dwarf the stablecoin sector. Stablecoin supply for USD-pegged tokens currently sits above $240 billion and is expected to grow substantially once stablecoin legislation is signed into law in the U.S.

BounceBit said its onchain equities offerings will live on its native Tokenized Stock Environment. "What stablecoins did for FX, tokenized stocks will do for global public markets," the trading platform said on X.

Although so far, companies offering tokenized equities have largely targeted non-U.S. users as a way of steering clear of U.S. regulators, that could change under President Donald Trump's crypto-friendly administration. Last week, Dinari said it was the first to secure U.S. approval to offer blockchain-based equity investments.