Binance is preparing to expand its stock trading services from the US to Asian markets following a slowdown in crypto revenue.

Binance is preparing to expand its stock trading services from the US to Asian markets, including South Korea, Japan, and Hong Kong, following the sluggish cryptocurrency market and Bitcoin's more than 30% drop since the beginning of the year.

June 9, 2569 at 12.05:XNUMX, Nikkei Asia reported that Binance, the world's largest cryptocurrency trading platform, is preparing to expand its business into Asian stock markets. Having recently launched US stock trading on its platform, this reflects an attempt to diversify revenue streams during a time when the crypto market is facing pressure from the decline in the price of Bitcoin and other digital assets.

Previously, Binance allowed clients to trade US stocks and ETFs using stablecoins such as USDT and USD1 for settlement, boasting 0% commission fees and offering investors the opportunity to hold physical shares through regulated securities custodians in the US.

Binance spokesperson He revealed to Nikkei Asia that... The company is considering expanding its services to additional markets and asset classes, subject to approval from regulatory authorities in each country. along with stating that Binance aims to provide users with easier access to investments across multiple asset classes, all on a single platform and at a lower cost.

Sources close to the project revealed that: Binance is likely to expand its stock trading services from several Asian markets, including South Korea, Japan, and Hong Kong.

Binance's entry into the stock market comes at a time when the cryptocurrency exchange business is facing increasing challenges, with Bitcoin having fallen by about 30% since the beginning of the year, despite its initial surge during the early part of President Donald Trump's second term, who was seen as a leader who supported the crypto industry.

Conversely, several stock markets have delivered outstanding returns, with South Korea's KOSPI index rising approximately 80% since the beginning of the year and Japan's Nikkei index increasing by about 25%, reflecting increased investment inflows into the stock market.

Binance specify that The U.S. stock trading service has received a strong response, with assets under management (AUM) surpassing $300 million within just three days of its launch, helping to attract new users to the platform. Stock investors accounted for 6% of new users on the first day and increased to 7% on the second day.

Andreya Kobeljic, Head of Derivatives Trading at Amina Bank. I think that Binance's primary goal is to compensate for slower revenue from its crypto business by increasing its portfolio of highly liquid and popular assets among investors, such as the stock market.

"Traditional assets like technology stocks and commodities have seen particularly strong price movements recently." he said

In addition, speculative trading in the stock market, particularly in technology stocks and large IPOs such as SpaceX, Anthropic, and OpenAI, is another factor that attracts investor interest.

However, Binance faces fierce competition from major online brokers with already strong customer bases, such as Tiger Brokers and Moomoo, as well as large Asian financial service providers like SBI Securities and Japan's Rakuten Securities, which are also expanding into digital assets.

Diego Martin, Chief Executive Officer of Yellow Capital. I think that A key challenge for Binance is building trust with investors in a market where consumers are more familiar with traditional brokerage brands.

Meanwhile, Binance continues to face pressure from regulators worldwide, particularly in the United States, where the company was found guilty of violating anti-money laundering laws and sanctions, resulting in a fine of up to $4,300 billion—one of the largest business settlements in US history.

As for Zhao Changpeng, the founder of Binance, he resigned as CEO in 2023 and served a four-month prison sentence for the same case.

Binance is once again under scrutiny following reports from US media alleging that over $1,700 billion in digital assets were transferred from accounts on the platform to an Iranian entity linked to terrorist groups, despite the company denying all allegations.

refer : asia.nikkei.com

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