Trading in stocks and paying for it through cryptocurrency is the newest trend in DeFi. With this trend started by Terra Lab’s Mirror Protocol in December, Binance is the latest entrant in this genre that has come up with a better adaptation of Mirror’s concept.
Mirror Protocol launched its tokenized stock where it used synthetic stocks that are a tokenized representation of physical stocks. However, Binance has built on the idea and launched something more substantial in zero commission ‘tokenized stocks’. These tokens are “backed by a depository portfolio of underlying securities” associated with a German investment firm.
Binance has associated with Elon Musk’s Tesla to launch its first equity. Tesla is one of the companies that have a substantial amount of cryptocurrencies to show in its financials. Even Elon Musk has taken to Twitter numerous times to show his support for this ever-growing technology-backed asset class.
Binance users will be able to acquire parts of Tesla shares to a fraction as small as one-hundredth of the Tesla share by settling the trade-in Binance USD or BUSD. Putting its users’ and investors’ worries at rest, companies shared that the tokenized stockholders will also receive dividends on the shares making this new concept an instant hit.
In the latest announcement, Binance and Coinbase, two of the biggest names in the crypto world have announced the launch of COIN/BUSD trading pair allowing users to trade in marginal shares of Coinbase.
In an official statement, Binance mentions,” Binance will list the Coinbase Stock Token (COIN) following Coinbase’s official listing on NASDAQ.”
Binance also adds, “Binance will continue to respond to market demand by listing more stock tokens and features. Trading of stock tokens will follow traditional exchange hours and is not available for residents in Mainland China, Turkey, and other restricted jurisdictions.”
- Binance has announced the launch of COIN/BUSD trading pair for its exchange users allowing them to trade in fractions of COIN equity.
- Binance had earlier launched Tesla’s tokenized stock enabling its users to trade in one-hundredth share of Tesla’s stock.
- Traditional trading hours to be followed for tokenized stocks.
- This new asset class is not available for residents of Mainland China, Turkey, and other restricted jurisdictions.