Binance, Stock Tokens, and World-Famous Companies
This week, top cryptocurrency exchange Binance made an interesting announcement. The cryptocurrency exchange decided to launch three new stock tokens. It already launched two of three stock tokens, and Binance will launch another on Friday. It launched tokenized stock pairings for leading business intelligence firm MicroStrategy as well as for Apple. The Microsoft stock token will launch on April 30. A depository portfolio held by CM-Equity AG fully supports its stock tokens.
The tokens mentioned above will allow users to trade fractionalized units of the share tokens, with minimum trade seizing set at one-hundredth of a token. The tokens will only be tradable versus the exchange’s stablecoin Binance USD. In other words, people from mainland China, the U.S., Turkey and other jurisdictions restricted by CM-Equity won’t be able to access stock tokens.
Binance and its competitor
Top cryptocurrency exchange launched its first stock token several weeks ago. Thus, customers have the opportunity to speculate on the price of Tesla. They have the right to purchase as little as one-hundredth of a Tesla share represented by a digital token. Binance listed fractional shares for Coinbase on April 15.
The cryptocurrency exchange worked really well in the first quarter of the year, as it reported great results. Binance’s expansion into stock tokens appears to demonstrate its desire to compete with Hong Kong-based cryptocurrency derivatives platform FX. It launched a fractionalized stock trading in October 2020, including derivatives tracking. Unfortunately, traders based in the U.S. and other jurisdictions restricted by FTX won’t be able to take advantage of the exchange’s fractionalized equity products.
The Hong Kong-based organization launched the products in collaboration with German-licensed investment firm CM-equity. Moreover, it cooperated with tokenization firm Digital Assets AG. Customers can choose from more than one dozen equity and cryptocurrency pairings to trade on FTX, including fractionalized Tesla.
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