Binance offers new tokenized stock trading service, starting with Tesla

Tuesday 13 April 2021 13:40 CET | News

Cryptocurrency exchange Binance has announced it will allow users to buy fractions of companies’ shares with a new tokenized stock trading service, starting with Tesla.

The crypto exchange announced the launch of Binance Stock Tokens, zero-commission digital tokens that qualify holders for returns including dividends. Users will be able to buy fractions of actual Tesla shares, with other companies to be added later.

Users will be able to purchase as little as one-hundredth of a Tesla share, with prices settled in Binance USD (BUSD). It is not the first tokenized stock play in crypto land: Terra Labs’ Mirror Protocol went live in December 2020.

But where Mirror uses synthetic stocks (or tokenized representations of actual equities), the Binance product is backed by a depository portfolio of underlying securities, managed by an investment firm in Germany, as CoinDesk says.

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Keywords: Binance, cryptocurrency, tokenization, digital assets
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: World
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Blockchain & Cryptocurrencies

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