CZ: As a “Pure Web3 Company”, Binance does not intend to offer stock trading

Regardless of how many new users it might attract, Binance is not interested in offering users the ability to trade stocks.

CEO Changpeng Zhao said Decrypt last gm podcast that cryptocurrency exchanges offering the feature are neither good nor bad, but he pointed out that the stock exchange does not align with his company’s philosophy.

As crypto firms suffer a general market meltdown, some have turned their attention to adding users. In May, FTX began offering its customers the ability to trade stocks in accounts funded with stablecoins.

“We don’t intend to trade stocks,” CZ said, drawing a line between Binance and at least one major peer. “We just don’t think we’ll be operating a tax brokerage store anytime soon.”

And while stock trading has proven a lucrative market for many retail investment platforms, such as Robinhood and Webull, CZ said he would rather see Binance focus on building more tools. Web3.

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

The CEO added that Binance was considering a few companies as potential acquisition targets during the bear market, but none of them would revolve around the traditional stock exchange. CZ also suggested that potential deals would likely be “simpler” than a complicated loan structure or bailout.

“That’s not to say complex deals are bad,” CZ said. “But my preference is always to keep it very simple, very straightforward, boil it all down to very basic, basic principles and go from there.”

This was a statement from CZ likely referring to the $500 million line of credit extended to bankrupt crypto broker Voyager Digital by Alameda Research, founded by crypto billionaire Sam Bankman-Fried, also CEO of FTX.

In May, Bankman-Fried bought a 7.6% stake in Robinhood, and Bloomberg reported last month, Bankman-Fried was interested in buying the stock and crypto trading app, but dismissed the rumor, saying there were “no active M&A conversations on Robinhood in progress”.

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