Binance To Offer Tokenized Share Trading Starting With Tesla Stock

Binance announced that the company starts to offer tokenized stock trading with Tesla stock. While the recent jump of Binance Coin (BNB) is still on everyone’s lips, this announcement has also given a boost to the company. The crypto exchange stated that each stock token will be equal to a single unit of the company share. The fractional trading of these tokens will be also allowed by the platform at the minimum level of the hundredth of one token. This arrangement is expected to increase the demand and liquidity for stock trading. 

Many experts think that this is just the beginning and Binance will introduce more stocks in its portfolio.

Binance Tries To Stay Competitive In The Industry 

Binance is not the first company that offers tokenized trade sharing. Its competitors like FTX and Bittrex Global had already launched these options before. The action taken by the exchange is not a surprise since Binance’s CEO, Changpeng Zhao, has earlier mentioned his willingness to launch such products.

The partners of the exchange are the German investment firm, CM-Equity AG, and Swiss asset tokenization platform, Digital Assets AG for the tokenization services. These names also partnered with the competitors of Binance. 

The tokenized stock trading on Binance will only be available during the market hours simply meaning that traders can purchase and sell Tesla stock only within Nasdaq opening hours. The tokens will be offered in BUSD, the exchange’s native USD-pegged stablecoin.

Zhao said: “Binance serves many users around the world, and we are very pleased to be able to help them participate in the equity market. Stock tokens demonstrate how we can democratize value transfer more seamlessly, reduce friction and costs to accessibility, without compromising on compliance or security. Through connecting traditional and crypto markets, we are building another technological bridge for a more inclusive financial future.”

SEE ALSO: BINANCE COIN SOARED 25% YESTERDAY AND 1,600% IN 2021 ≫≫

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