Changpeng Zhao believes that initial public offerings will transition to blockchain technology. While he provided no specific timeline, the necessary infrastructure is already operational and the first deals have been completed.
Tokenized offerings change the investor experience in three key areas: access, timing, and size. Retail buyers can gain access from the first day, trading occurs around the clock without waiting for an opening bell, and shares can be divided into small fractions.
Automation in on-chain IPOs reduces the costs associated with underwriters, lawyers, and auditors. Currently, tokenized stocks hold approximately $2.9 billion in value, reflecting a 14% increase over the last month, with BNB Chain identified by Grayscale as a leading network for these assets.
Regulatory requirements remain unchanged, as the SEC stated in January that tokenization does not remove registration and disclosure duties. However, the New York Stock Exchange implemented a rule in April allowing tokenized large-cap stocks to trade alongside conventional ones with next-day settlement.
In Europe, an exchange licensed under the distributed ledger pilot regime hosted the first on-chain IPO in April. Despite these advancements, liquidity remains a challenge, as thin order books can still lead to significant price volatility.
