Cryptocurrency exchange Binance has launched tokenized stock trading on its platform, allowing its users to buy fractions of companies’ shares, starting with Tesla.
Binance introduces tokenized stock trading
Leading cryptocurrency exchange Binance has introduced tokenized stock trading on its platform. Binance announced this earlier today, revealing that its users can now buy fractions of companies’ shares.
According to its press release, Binance stated that it is starting with Tesla (TSLA). “Binance is delighted to announce the official launch of its zero-commission, tradable stock tokens, allowing the users to trade fractional stocks. Stock tokens are denominated, settled, and collateralized in BUSD,” the post said.
The first pair on the platform is Tesla Inc. (TSLA). Binance added that trading for the TSLA/BUSD pair is set to start later today, and users can trade fractional Tesla stock on the Binance trading platform.
Binance explained that the “Binance Stock Tokens are zero-commission digital tokens fully backed by a depository portfolio of underlying securities that represents the outstanding tokens. Holders of stock tokens qualify for economic returns on the underlying shares, including potential dividends.”
The cryptocurrency exchange added that it listed the stock tokens due to demand. Binance stated that trading the stock tokens will be in line with traditional exchange hours, and the service is not available for residents in Mainland China, Turkey, and other restricted jurisdictions.
Binance expanding its services
Binance has been one of the leading cryptocurrency exchanges since it debuted in 2017. The exchange has one of the largest coins collections in the crypto space. Its Binance Smart Chain is gaining popularity and appealing to several DeFi and NFT projects.
The Binance Coin (BNB) has been rallying in recent weeks, surpassing the $500 mark this weekend. The cryptocurrency is now the third-largest in terms of market cap, only behind Bitcoin and Ethereum.