Binance Founder CZ Predicts IPOs Are Moving On Chain

Changpeng Zhao recently shared his view that traditional initial public offerings will move on chain. While he did not provide a specific timeline for this shift, the underlying technology is already active and supporting live deals. The market is showing clear signs of progress as the total value of tokenized stocks on chain recently climbed to nearly 3 billion dollars.

Moving these offerings to a blockchain brings several potential advantages for investors. Tokenized listings can be available to retail buyers immediately, avoiding the gatekeeping often found in traditional institutional allocations. These assets can also trade around the clock and allow for smaller, fractional ownership. Additionally, automation could eventually reduce the heavy costs associated with underwriters and legal intermediaries.

Despite the technological shift, the regulatory environment remains consistent. Authorities like the Securities and Exchange Commission maintain that tokenizing a share does not bypass registration or disclosure requirements. Investors should also pay close attention to the fine print, as some tokenized products track share prices without actually granting standard shareholder rights.

Mainstream exchanges are already adapting to this new landscape. The New York Stock Exchange now allows for the trading of tokenized large cap stocks, while European exchanges have hosted successful on chain IPOs under pilot programs. The main challenge for the future is liquidity. Even with 24/7 access, thin order books can cause significant price swings. The industry is now waiting to see if a major, household name company will choose to launch its public offering on chain.