Binance Founder CZ: ''IPOs will move on chain''

[sergiorus]

So this tweet [1] made quite a bit of noise on the internet. Even some mass media tabloids made a news out of it. Can somebody explain what's the big deal about it?

Like, obviously it would be VERY heavily geo-restricted and KYC/AML/Residence checks will be far more draconian than ever. You probably won't even be able to purchase the shares with Bitcoin, only with certain regulated U.S. dollar-pegged stablecoins (ok, maybe some regulated wrapped Bitcoin version like WBTC, but I still doubt that).

So is there, like, a single upside in that and if not, why would they even bother?





[1] https://x.com/cz_binance/status/2097152407147073613

[hugeblack]

Why do so many people fail to consider that some of what CZ says might be nonsense? Blockchain technology might be used, but that doesn't necessarily mean it will involve a cryptocurrency or a decentralized system.

[sergiorus]

Why do so many people fail to consider that some of what CZ says might be nonsense? Blockchain technology might be used, but that doesn't necessarily mean it will involve a cryptocurrency or a decentralized system.

They are already bringing equity onchain at an unprecedented pace. They make trading pairs with them againt memecoins, which increases the demand for the underlying stock and pumps the prices.

Pre-IPO futures of Anthropic make huge volumes onchain too.

Nasdaq invests in Kraken and NYSE's parent firm ICE invests in OKX. For the sole purpose to bring their platforms onchain.

Stablecoin issuers are joining the list of the largest U.S. Treasury bills holders in the world.

Clearly everything goes in that direction. It's more like teasing from his side at this point.

[EarnOnVictor]

So is there, like, a single upside in that and if not, why would they even bother?

You are thoughtful about this question, TBH. For me, CZ is making it sound like it's a bigger deal than it is, and of course, the internet will be agog about it since it is coming from him. But think about it, to what gain? This doesn’t mean people will suddenly be able to buy stocks and other financial assest anonymously with Bitcoin from anywhere, for it is certain that the AML, KYC, geo-restrictions, and all the usual/standard securities protocols of the centralised arrangements would all still apply. This could make things faster and cheaper, but it's not the revolution CZ makes it feels like.

So long as the government and their monitoring/controlling vices are still in place, what is this actually solving? That's the fair truth!

[SamReomo]

I think it's okay if IPOs move on chain as that will allow many people to invest in those without any delays but I think there will be regulations in doing so and it won't happen anytime soon. I think it's a good sign for the crypto market but somehow a bad one for those who give high importance to privacy. I think such IPOs will not be safe because on chain attacks can create problems for investors.

[ultrloa]

Why do so many people fail to consider that some of what CZ says might be nonsense? Blockchain technology might be used, but that doesn't necessarily mean it will involve a cryptocurrency or a decentralized system.

Crazy to know that they are buying those statements he made. While in fact there are so many cases that CZ shills a project.

So best not to fall on his sweet words or seems to be innovative ones, since who knows maybe he just want those things what he mentioned became so popular. Knowing that lots of medias buy his statement post in social media.

Much better for people to be much careful about this, since who knows maybe we might see another ICO 2.0 from those things he mentioned.

[ObeyKnock]

So is there, like, a single upside in that and if not, why would they even bother?

I wish that tweet had more than 4 words because there’s no meat to this. It’s not specific and it doesn’t have an organization or timeline. You won’t be able to circumvent geo-restrictions/KYC and buy stocks with BTC.

What it is though is an upgrade to issuer-side infrastructure. Currently, cap table management/settlement is done via a (DTCC-style) batched settlement system, not in real-time and involves lots of reconciliation. Tokenization/modernized ledgers mean that issuers will be able to settle 24/7 & near-instantly (DTCC has been conducting trials with ~40 institutions as recently as July with a larger rollout in October; ST Group (FR) had an actual tokenized IPO with actual equity in April) on a shared ledger.

Compliance won’t go away, it’ll be built into the token. Rather than the custodian checking whether you’re eligible to receive shares, this will be embedded into the token, such as ERC-3643, and enforced via smart contract.

Crypto.com’s implementation has no actual equity attached to them, no voting rights etc., just synthetic tokens that track the price of a company’s stock.

[FinneysTrueVision]

Moving IPOs on chain will make them more accessible and remove some middlemen. The intention isn’t that any person who holds crypto will be able to invest; naturally, they will have some level of compliance that will be necessary if you are buying shares.

There are also drawbacks to doing an onchain IPO. Companies wouldn’t want their stock to tank because a sniper bought most of the shares in the first seconds only to dump them some minutes later. The blockchain also isn’t very private. There will have to be some measures to prevent manipulation, otherwise this could end up being something that sounds nice but doesn’t work in practice.

[5W-KILO]

Why do so many people fail to consider that some of what CZ says might be nonsense? Blockchain technology might be used, but that doesn't necessarily mean it will involve a cryptocurrency or a decentralized system.

Maybe that's because people forget things too fast? CZ made alot of prediction between 2023 and 2025 to fool the audience, Binance pumped their own IEO projects and then dumped them all, this was ongoing while CZ was shilling some upcoming market actions and the way was down from that point on, CZ is one of those people that can't be trusted, they run their mouth for different reasons.

[sergiorus]

Why do so many people fail to consider that some of what CZ says might be nonsense? Blockchain technology might be used, but that doesn't necessarily mean it will involve a cryptocurrency or a decentralized system.

Maybe that's because people forget things too fast? CZ made alot of prediction between 2023 and 2025 to fool the audience, Binance pumped their own IEO projects and then dumped them all, this was ongoing while CZ was shilling some upcoming market actions and the way was down from that point on, CZ is one of those people that can't be trusted, they run their mouth for different reasons.

Of course CZ has a history of leading people into a slaughterhouse by bullposting right before massive price contractions, bullposting straight up scam tokens and so on.

But when it comes to predicting technological trends in crypto he has been spot on.

About many things: DeFi, multichain future (very early on), RWAs and institutional adoption (very early on as well).

[TastyChillySauce00]

Why do so many people fail to consider that some of what CZ says might be nonsense? Blockchain technology might be used, but that doesn't necessarily mean it will involve a cryptocurrency or a decentralized system.

Yep exactly, the "IPOs will move on chain" that CZ think of is probably going to be modeled after Binance's Pre-TGE Prime Sale which already live on their binance alpha program for quite a while or modeled after their SPCX pre-IPO which got canceled.
The on chain part is only when we deposit the money, after that everything will be tradfi style being managed by a company, it's just an IEO rebranded after IEO has been dying after the bullish sentiment ended.

[jossiel]

We get the hype word and that's the chain. Hugeblack is right that whenever blockchain is mentioned, that doesn't have to get through with bitcoin or crypto and there is no relation to it.

They're going to use the technology for their own distribution and what not but there's no involvement for crypto as it's not required.

[retreat]

Blockchain might be increasingly used by institutions, but that doesn't necessarily mean it will involve cryptocurrency. It could be used for recordkeeping and other purposes, but the system would still be like a regular IPO where investors purchase shares as usual through their broker – rather than using a cryptocurrency for the transaction. However, this also depends on the stock market, as so far, traditional financial markets still operate through established infrastructure, although blockchain is beginning to be explored as an alternative.

But it's still funny to see so many people getting hyped and even mentioning their shitcoins in that tweet. Like CZ is some angel bringing them good news, when in fact what he said is information that isn't even certain yet.

[STT]

It is a big deal, its not a big deal purely from CZ mentioning it.  Its more that its being done regardless by major stock exchanges world wide.
  I wasn't expecting it to be mostly done via decentralized systems, I was expecting proprietary blockchain tech but one sided control by the exchange who I doubt would want to relinquish their control and ability to tax participants, regulate and suspend trading in some instances so free control isn't on the cards really.
  Much stock trading is nominal or trust based not physical ownership so its well suited for adaption I suppose.

Gambling books I know of allow trading of companies pre IPO, they probably make alot of money due to interest and hype in big names.  This idea would not be legal in some countries, others its fairly normal.  They want to standardize that virtual ledger situation and then center it around the exchange rules I reckon.

[Darker45]

Because time will come assets and equities and bonds will be tokenized. I strongly believe this is the general direction financial technology is taking us. The world is getting digital. In that age, it's just apt that IPOs, too, will move on chain.

Perhaps the golden age of ICO which was in 2017, in which everything was tokenized from real estate to bananas, to music, to running, to blessings from god, and everything else, was the future happening at the wrong time. It will happen again in the foreseeable future, and in the perfect time.

There isn't just a single upside in that. For one, the playing field would be a lot bigger. IPOs would be a lot more inclusive. And then access would be 24/7. It doesn't take a break. And because it's around the clock, it'd be truly global.

[shinratensei_]

Because time will come assets and equities and bonds will be tokenized. I strongly believe this is the general direction financial technology is taking us. The world is getting digital. In that age, it's just apt that IPOs, too, will move on chain.

Perhaps the golden age of ICO which was in 2017, in which everything was tokenized from real estate to bananas, to music, to running, to blessings from god, and everything else, was the future happening at the wrong time. It will happen again in the foreseeable future, and in the perfect time.

There isn't just a single upside in that. For one, the playing field would be a lot bigger. IPOs would be a lot more inclusive. And then access would be 24/7. It doesn't take a break. And because it's around the clock, it'd be truly global.

I bet it won't happen unless CLARITY Act is passing and outside that, it's going to be offshore tokenized stocks. Speaking about facts, majority of tokenized stocks are simply synthetic price exposure and recently the CEO of AMC and CEO of Robinhood has been having a clash about the moral ethics and legality of offshore tokenized stocks. Even the SEC's innovation exemption is prohibiting IPO offering and only allowing secondary market for already registered stock. IPOs will move on chain maybe after years has passed and regulation give enough legal framework to work with hence why it isn't exactly a possibility right now.

[GreatArkansas]

Because time will come assets and equities and bonds will be tokenized. I strongly believe this is the general direction financial technology is taking us. The world is getting digital. In that age, it's just apt that IPOs, too, will move on chain.

Perhaps the golden age of ICO which was in 2017, in which everything was tokenized from real estate to bananas, to music, to running, to blessings from god, and everything else, was the future happening at the wrong time. It will happen again in the foreseeable future, and in the perfect time.

There isn't just a single upside in that. For one, the playing field would be a lot bigger. IPOs would be a lot more inclusive. And then access would be 24/7. It doesn't take a break. And because it's around the clock, it'd be truly global.

I bet it won't happen unless CLARITY Act is passing and outside that, it's going to be offshore tokenized stocks. Speaking about facts, majority of tokenized stocks are simply synthetic price exposure and recently the CEO of AMC and CEO of Robinhood has been having a clash about the moral ethics and legality of offshore tokenized stocks. Even the SEC's innovation exemption is prohibiting IPO offering and only allowing secondary market for already registered stock. IPOs will move on chain maybe after years has passed and regulation give enough legal framework to work with hence why it isn't exactly a possibility right now.

For me, it's already happening, especially since Robinhood started to use on-chain, like they started to have their own layer 2 networks, which for me, it is a good start to introduce blockchain to institutions. It means if Robinhood can do it, for sure others will follow.
Regulation need to catch up first, that's why I also feel this will take years, not something next bull run hype. CZ talk is interesting, but for me still early.

[yhiaali3]

I think all this fuss is because of CZ himself, otherwise if it had been someone else, there wouldn't have been so much fuss, Or at least, that’s what I think.

In any case, I expect that the intended benefit of initial public offerings (IPOs) via blockchain is: instant settlement as their presence on the blockchain allows for immediate settlement throughout the week.
Also Reducing costs through the introduction of smart contracts, as well as opening up broader global markets by enabling larger segments of investors to access initial offerings more easily.

[shinratensei_]

For me, it's already happening, especially since Robinhood started to use on-chain, like they started to have their own layer 2 networks, which for me, it is a good start to introduce blockchain to institutions. It means if Robinhood can do it, for sure others will follow.
Regulation need to catch up first, that's why I also feel this will take years, not something next bull run hype. CZ talk is interesting, but for me still early.

It would be great if IPO can happen on Robinhood chain indeed, I do hope it really happen, maybe our greatest hope if not with the CLARITY Act is SEC revising innovation exemption to allow for Public IPO. As far as I know it's possible but SEC still thinking about regulatory compliance which is why they explicitly saying IPO isn't allowed, in any case on chain IPO is a good one step further for modern stock market that will enable 24/7 market for its on chain primary market and global access without brokers and I'm all for it. No more synthetic price exposure but a real stock with dividend and right of ownership as a token.

[cryptoaddictchie]

CZ is probably thinking of RWA when he said IPO will be move onchain. Well it doesnt happened yet but the possibility of tjat happening will change the landscape of stocks and real world assets. Imagine that you can join now using blockchain to those IPO that arent accesible so easily.

If this will be used in our country for the IPOs that will change the game. However will CZ make a feature on their exchange for this to happen? Im thinking its not just a noise but their cooking something.