[DigitalToday reporter Yoonseo Lee] Cryptocurrency exchange Binance has launched an asset management service that includes 11 U.S. exchange-traded funds (ETFs).

Cointelegraph reported on Sept. 15 local time that the product consists of ETFs that invest in short-term U.S. Treasuries and investment-grade corporate bonds.

The new service is offered within Binance Earn. The products are divided into cash management, stable income and enhanced yield depending on the investment period. The investment period is classified from less than 6 months to more than 1 year. Users can look up and order ETFs on Binance Earn, but actual trading is processed through Binance's stock trading service. Binance said investors receive the economic benefits of the shares, including stock price movements and cash distributions.

The structure differs from tokenised stocks. Users buy actual ETF shares, not tokens. Binance provides the trading screen and access route, and Nest Trading sends orders to Alpaca Securities. Alpaca Securities then executes trades and holds the securities.

As a result, Binance users can access traditional securities on the same platform they used for cryptocurrencies. The underlying assets, however, remain within existing brokerage infrastructure. The platform experience is integrated, while order execution and custody use the existing financial system.

Binance's launch is an extension of its push to expand traditional finance business. Earlier this month, Binance also added physically settled options based on more than 1,000 U.S. stocks and ETFs. It said it already offers more than 7,000 stock and ETF products.

The market sees cryptocurrency exchanges as moving to broaden their offerings beyond digital assets. In particular, the product's focus on short-term U.S. Treasuries and investment-grade corporate bonds is seen as an attempt to present assets with different characteristics from volatile cryptocurrencies within the same account experience. Binance's classification into cash management, stable income and enhanced yield is also structured to target such demand.

Debate in the ETF market over tokenisation and expanded access is also continuing. In a survey by PricewaterhouseCoopers last year, more than 80 percent of respondents said tokenisation would increase the ETF market's global reach and 24-hour access within the next 3 years. Binance, however, chose a structure based on buying actual ETF shares rather than tokenisation for this service.

In this situation, the point to watch is how far Binance will expand the range of traditional finance products. As cryptocurrency exchanges continue to link with existing securities infrastructure and bundle U.S.-listed ETFs, stocks and options on a single platform, there could be changes in user inflows and product competition.