Binance starts Offering Tesla Stock Tokens, Will they offer Coinbase (COIN) too?
Binance, a leading cryptocurrency exchange, has announced the launch of tokenized shares of publicly traded companies, their new product. They have listed Tesla’s tokenized shares as their first offering in their newest product line.
Binance’s official release said that the symbol of the Tesla tokens on Binance will be TSLA, representing one share of Tesla’s equity stock. Crypto traders can trade these tokens on Binance exchange with zero commission through their accounts.
Binance’s first tokenized product TSLA will be backed by shares of Tesla, which will be stored in a “depository portfolio” based on Tesla securities. Binance said in its official release that they have released their first tokenized product in cooperation with CM-Equity AG and asset tokenization platform Digital Assets AG.
Binance cryptocurrency exchange’s official release said:
“Tesla stock tokens on Binance will have a minimum trade size of one-hundredth of a stock token, representing the same fraction of a Tesla share. Stock tokens are priced and settled in Binance USD (BUSD), a regulated stablecoin pegged to the U.S. dollar and issued by Paxos Trust Co.”
With the release of tokenized Tesla shares, Binance opened new possibilities. The traders can trade it in fractions, which means that they can buy a chunk of Tesla shares at a much lesser price.
The users have to trade these tokenized Tesla share tokens (TSLA) on Binance within the traditional market trading hours.. The traders will be required to complete a Know Your Customer (KYC) process. The best part is that the traders and ‘hodlers’ of Tesla share tokens will be able to receive the same benefits that the shareholders receive from companies. The traders of TSLA are eligible for receiving dividends to return capital equivalent to the underlying equity, stock splitting, and others.
Binance CEO Changpeng Zhao has thanked Tesla CEO Elon Musk for bringing “Tesla into the crypto space”. Regarding the new release, Zhao said:
“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.”
Binance has reportedly also asked its followers about suggestions of companies whom they believe should be listed next. A large portion of Binance’s followers said that they want to see tokenized stock of Coinbase (COIN), which is going public on NASDAQ on April 14, 2021. No official announcement has been made yet.
Michael Kott, CEO of CM Equity AG, said:
“CM-Equity AG and Digital Assets AG, as the engineers of the product, are pleased to pioneer an innovative experience on the Binance platform. This new kind of token combines different asset classes that are offered in one single marketplace for instant settlement in a compliant, scalable, and sound format.”
It needs special mention that Binance’s native token BNB is currently experiencing an explosive rally. In the last 7-days, BNB’s price has increased by around 69.6%. In the 24-hour chart, the BNB price has increased by 17.8% and is currently trading at US$591.94.
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