coincodex.com
3 new stock tokens are coming to Binance
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The Binance cryptocurrency exchange has announced that it will be adding three new stock tokens to its platform: MicroStrategy, Apple and Microsoft.
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The MicroStrategy stock token went live on April 26 at 1:30 PM UTC. The Apple and Microsoft stock tokens will be available for trading on April 28 and 30, respectively. With the new listings, Binance seems to be continuing the trend of listing tokens that track the stocks of tech companies or companies that are of particular interest to cryptocurrency investors. For example, MicroStrategy is known for its significant Bitcoin holdings – the company has over 90,000 BTC on its balance sheet.
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The first two stock tokens listed on Binance track the shares of automaker Tesla and cryptocurrency exchange Coinbase. One stock token represents one share of the corresponding stock, and the stocks backing the tokens are held by CM-Equity AG. Users need to complete a know your customer (KYC) verification process before they’re allowed to trade and hold stock tokens on Binance.
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Compared to standard stock ownership, stock tokens on Binance enable fractional ownership – investors can own as little as 1/100 of a share. Unlike FTX, which offers tokenized stock trading on a 24/7 basis, Binance’s stock token offering is only live during traditional market hours.
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Tokenized stocks are a relatively new product, and reports suggest that Binance drew some attention from regulators following its launch of stock token trading. The Financial Times recently reported that the U.K.’s Financial Conduct Authority was discussing the product with Binance to understand how it fits into the regulatory environment.
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Binance is currently the largest cryptocurrency exchange by trading volume. In the last 24 hours, Binance saw $39.2 billion worth of volume on its spot markets and $27.5 billion worth of volume on its derivatives trading platform Binance Futures.