Binance Won’t Offer Stock Trading Services, Says Changpeng Zhao

Twitter icon  •  Published 1 год назад  •  Hassan Maishera

Binance's CEO has pointed out that the cryptocurrency exchange won’t offer stock trading services to its users.

Changpeng Zhao, the CEO of Binance, has revealed that the cryptocurrency exchange won’t consider offering stock trading services.

Binance has been the world’s largest cryptocurrency exchange since it was launched in 2017. Binance is the world’s leading cryptocurrency exchange in terms of the daily trading volume.  Binance reviews have been exceptional, and the exchange continues to attract more users to its platforms.

CZ has now maintained that Binance will remain a Web3 company and, as such, won’t offer stock trading services to its customers. He stated that swapping equities doesn’t align with the company’s values. 

He told Decrypt in a podcast interview that;

"Some exchanges want to go back to stock trading. We don’t have any plans on doing stock trading We’re not running a fiscal broker store anytime soon.”

Stock trading has been lucrative for some investment platforms like Robinhood, which have combined crypto and stock trading services. However, Changpeng Zhao said Binance wouldn’t do that as it is a pure Web3 company. 

CZ said, “We are a pure Web3 company. We’re not going back, we’re moving forward.”

While Binance will remain a cryptocurrency and blockchain company, it will continue to expand its presence within the ecosystem. CZ said Binance is currently looking at a few companies as potential acquisition targets during the bear market.

However, he maintained that none of these companies would revolve around the exchange of traditional equities. CZ also suggested the potential acquisitions would be simpler than a complicated loan structure or bailout.

FTX has adopted the method of potential acquisitions via loan structures and bailout, and CZ previously pointed out that he doesn’t see Binance following in the same direction. 

CZ added that;

“That is not to say that complex deals are bad. But my preference is always keep everything very simple, very straightforward, boil everything down to very basic core principles, and go from there.”

The Binance CEO also commented directly on the $500 million line of credit extended to bankrupt crypto broker Voyager Digital by Sam Bankman-Fried's Alameda Research, stating that he would never do that type of deal. 

Bankman-Fried, via his FTX and Alameda Research companies, has been expanding his presence within the crypto ecosystem. In May, the FTX CEO bought a 7.6% stake in Robinhood. 

There are now reports that Bankman-Fried is interested in purchasing the stock and crypto trading app outright. However, Bankman-Fried has dismissed the rumor, adding that there were “no active M&A conversations about Robinhood currently taking place.”

Binance vs Coinbase remains one of the most competitive comparisons within the cryptocurrency ecosystem, and Binance is currently leading. The Binance US withdrawal fee is now $0, making it one of the most competitive exchanges for traders in the United States.

Data obtained from Coinmarketcap shows that Binance has a daily trading volume of $16 billion while Binance.US processes nearly $400 million daily.

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.