Binance, the world’s major cryptocurrency exchange, has announced that it will list three new stock tokens over the coming week after the launch of tokens tracking the performance of Tesla and Coinbase shares earlier this month.
It has been reported that the exchange will launch tokenized stock pairings for leading business intelligence firm, Microstrategy (MSTR), in addition to multinational tech firms Apple (AAPL) and Microsoft (MSFT).
However, the tokens will allow users to trade fractionalized units of the share tokens, with minimum trade sizing set at one one-hundredth of a token. Binance’s MSTR tokens went LIVE at 1:30 pm UTC on April 26, while the AAPL tokens will launch at the same time on April 28, and MSFT tokens will be tradable from April 30.
Binance will offer fractionalized trade in stock tokens tracking Tesla, Apple, and Microstrategy by the end of April. https://t.co/6T7ICXAMVC — Cointelegraph (@Cointelegraph) April 26, 2021
The report said that the exchange asserts its stock tokens are “fully backed by a depository portfolio of underlying securities” held by German financial services provider, CM-Equity AG. The tokens will observe traditional stock trading hours. The tokens will only be tradable against Binance’s stablecoin BUSD. Binance’s stock tokens are not available to residents of mainland China, the United States, Turkey, and other jurisdictions restricted by CM-Equity.
Likewise, Binance launched its first stock token on April 12 by allowing its customers to speculate on the price of Tesla (TSLA). The exchange also listed fractional shares for Coinbase (COIN) on April 15.
Thus, Binance’s expansion into stock tokens appears to demonstrate increasing competition between it and Hong Kong-headquartered crypto derivatives platform, FTX, which launched fractionalized stock trading in October 2020, including derivatives tracking Tesla and Apple shares.