Changpeng Zhao believes blockchain IPOs could change Wall Street.

Binance founder Changpeng Zhao believes that future IPOs will inevitably take place on the blockchain.

Source: X

When initial public offerings (IPOs) move to blockchain, the rules of the game in the traditional primary market are rewritten. Innovations are worth monitoring, but their widespread adoption is still a long way off, wrote one commenter.

Zhao's remarks come amid the growing popularity of tokenized assets on Wall Street. Binance's bStocks platform, for example, surpassed $500 million in market capitalization less than seven weeks after its launch on June 11. The platform currently lists 56 tokens, with SNDKB, SPCXB, MUB, CRCLB, and SOXLB holding the largest shares.

By July, it accounted for 27% of the global tokenized equity market capitalization, while market leader Ondo's dominance declined from 75% to 45%.

On-chain IPOs have the potential to transform capital markets by simplifying the process of raising funds for companies and investors' access to shares. Traditional IPOs often involve intermediaries, investment banks, stock exchanges, clearinghouses, and brokers, making the process time-consuming. Blockchain, on the other hand, allows shares to be represented as digital tokens, speeding up ownership records and automating some processes through smart contracts.

London Stock Exchange Group (LSEG) plans to launch tokenised UK shares to give international investors easier access to London-based issuers.