Crypto exchange BINANCE has announced the launch of zero-commission tradable stock tokens that allow users to trade in fractional stocks. All stock tokens are denominated, settled and collateralized in Binance USD (BUSD), a US dollar-denominated stablecoin.
The first Binance Stock Token (BST) to be listed is Tesla Inc. Trading for the TSLA/BUSD pair will open at 13:35 UTC on April 12, 2021.
Binance Stock Tokens
Binance stock tokens are digital tokens that are backed by a portfolio of underlying securities.
Holders of these tokens qualify for economic returns on the underlying shares, including potential dividends, per the Binance website.
While the TSLA stock token is the first to be listed, the exchange intends to “respond to market demand” by listing more stock tokens and features in the future.
Tesla and cryptocurrency
This isn't the first time that Tesla has crossed paths with the world of cryptocurrency.
Earlier this year, the EV manufacturing company—led by CEO Elon Musk—announced a whopping $1.5 billion investment into Bitcoin. In March, the company began accepting Bitcoin as a form of payment for its cars. Tesla intends to hold any Bitcoin received from purchases of its products, rather than converting it into fiat currency.
CEO Elon Musk has become one of the most prominent advocates for cryptocurrency; in February of this year, Musk said that investors “might as well have crypto” if they were considering investing in gold. And soon after he updated his Twitter bio to Bitcoin, the cryptocurrency's price spiked by 20%.
