3 years ago
128 Top cryptocurrency asset exchange Binance has said that it will list three new stock tokens over the coming week. The announcement comes following the launch of tokens tracking the performance of Tesla and Coinbase shares earlier this month.
The upcoming listings will bring in the total number of stock tokens tradable on Binance to five.
Binance announced on April 26, 2021, that it will launch tokenized stock pairings for the leading multinational tech firms Apple (AAPL) and Microsoft (MSFT) and one of the biggest business intelligence firms, Microstrategy (MSTR).
These tokens would enable users to trade fractional units of the share tokens, with minimum trade sizing set at one-hundredth of a token.
Notably, Binance’s MSTR tokens are slated to go live at 1:30 pm UTC on April 26. On the other hand, the MSFT tokens will be tradable from April 30, while the AAPL tokens will launch at 1:30 pm UTC on April 28.
This exchange alleges that its stock tokens are wholly backed by a depository portfolio of the underlying securities held by German financial services provider, CM-Equity AG. The tokens will also observe traditional stock trading hours.
Reports state that these tokens will only be tradable against Binance’s BUSD stablecoin. Binance’s stock tokens are not available to the residents of Turkey, mainland China, the US, and other jurisdictions restricted by CM-Equity.
On April 12, Binance launched its first stock token enabling its users to speculate on the price of Tesla (TSLA). Also, the crypto exchange listed some fractional shares for Coinbase (COIN) on April 15.
Binance expansion into the stock tokens seems to show an increasing competition between the platform and Hong Kong-headquartered cryptocurrency derivatives platform, FTX. FTX launched fractionalized stock trading in October 2021, including the derivatives tracking Apple and Tesla shares.
