Binance: Crypto Exchanges Could Add $2T to Stocks by 2031

Binance Research projects crypto exchanges could channel about $2 trillion in new capital and add roughly 300 million investors to global equity markets by 2031. In a more optimistic scenario, the report estimates up to $5 trillion in annual equity inflows from crypto users within five years.

The report uses a top-down model. It starts with the global crypto user base and applies assumptions on exchange coverage, user eligibility, adoption rates and average position sizes to estimate the number of active equity traders and total capital deployment.

Internal product data from Binance shows almost 93% of the platform’s initial stock-trading users were located in emerging markets. The report links that pattern to limited local brokerage access and geographic barriers that have historically restricted participation in global equity markets.

The research contrasts U.S. and international equity ownership. About 62% of Americans own stocks directly, through funds or retirement accounts, while equity ownership outside the United States remains below 20% of the population, the report finds.

Tokenized equities are identified as a possible route for exchanges to offer fractional or digital versions of traditional stocks. Tokenization can lower minimum investments and simplify cross-border access, the report notes.

The authors highlight uncertainties that could affect the projections. Legal and regulatory frameworks for tokenized securities vary by jurisdiction, and some regulators have restricted or scrutinized crypto firms offering securities-like products. User conversion from crypto trading to active equity investing is not guaranteed, and actual position sizes could differ from the report’s assumptions.

Exchanges have expanded services beyond cryptocurrencies to include derivatives, custody and stock-like products. The report states that regulatory clarity, market acceptance and user uptake will determine whether the projected capital flows and investor growth occur.