Binance Exchange has announced the launch of zero-commission tradable stock tokens and the first tokenized stock would be of electric car manufacturer Tesla. All the stock tokens would be denominated, settled, and collateralized in BUSD. The BINANCE Stock token would tokenize a fraction of the value of the original stock price which would be available for trading on the exchange, TSLA/BUSD pair is scheduled to go live later today.
#Binance Launches Zero-Commission, Tradable Stock Tokens
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— Binance (@binance) April 12, 2021
Binance also assured it would add more stock tokens to the platform based on customers’ demand. The exchange also informed these stock tokens won’t be available for trading in China, Turkey, and other restricted areas. However, Binance is not the first crypto exchange to launch fractionally tokenized shares and FTX was the first platform to start offering pre-IPO tokenized shares for Airbnb and most recently coinbase.
Changpeng Zhao, the CEO of Binance commented on the latest product offering from the platform and said,
“Stock tokens demonstrate how we can democratize value transfer more seamlessly, reduce friction and costs to accessibility, without compromising on compliance or security,”
Binance is Expanding its Product Line as Crypto Goes Mainstream
Binance is the world’s largest crypto exchange by trading volume and accounts for millions of customers across the world. Most recently its native chain BSC has become a prominent chain in the Defi world accounting for 3X the trading volume of the Ethereum network. Over the years Binance has dominated every aspect of crypto trading both in the spot market as well as leverage trading.
As cryptocurrencies are going more mainstream this year, more crypto companies are seeing a rise in their valuation. At the same time, these crypto companies are also expanding their infrastructure and products offering in order to suit the needs of new customers.
