Binance today announced the launch of a tradable stock contract at zero commission fee allowing traders to trade fractionally tokenized versions of mainstream stocks on Binance, The first stock token would be of Elon Musk-led Tesla which would be paired, traded, and fractionalized in Binance USD (BUSD). The decision to include tokenized shares is to offer a wider portfolio to the existing customers allowing them to trade the traditional stock market without having to leave the platform they are using.
The Binance Stock token service is being launched in association with CM-Equity AG, a licensed investment firm in Germany, and Swiss-based Digital Assets AG, an asset tokenization platform. The trading hours of Binance stock tokens would be similar to the traditional stock market.
Introducing tradable stock tokens on #Binance!
Trade digital tokens that represent fully backed shares of equity stock.
— Binance (@binance) April 12, 2021
Customers on the platform can start trading $TSLA stocks starting on 12th April where each tokenized share of TSLA would represent 1/100th of the actual market value of the stock. $TSLA is currently trading at $677.02, thus the $TSLA stock token would be valued at $6.77 a coin.
How to Trade TSLA/BUSD on Binance
The tokenized Tesla stocks would be available to trade against native stable coin BUSD and all the settlements would be done in the same token. traders can buy $TSLA tokenized stocks in BUSD and start trading on the exchange like any other digital asset. The exchange has also assured that other popular stock tokens would be added later based on the customer’s demand.
Binance CEO Changpeng Zhao suggested that the launch of the Binance stock token is a testimony of closing gap between the digital finance market and the traditional finance market. He explained,
“Binance serves many users around the world and we are very pleased to be able to help them participate in the equity market. Through connecting traditional and crypto markets, we are building another technological bridge for a more inclusive financial future,”
Prior to Binance FTX decentralized exchange had launched a similar stock token for Airbnb and many other traditional stocks that can be traded along with other digital assets. However, Binance being a market leader would ensure a larger market exposure for these tokenized assets.
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