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Global crypto exchange Binance is expanding its offerings with the launch of stock tokens.
In a new blog post, Binance reveals that it is unveiling tradable stock tokens that enable users to access shares of companies listed in traditional stock exchanges.
Binance notes that each stock token is fully backed and represents one share of equity stock. To facilitate the sale and storage of stock tokens, the crypto exchange has teamed up with investment firm CM-Equity AG and Switzerland-based asset tokenization platform Digital Assets AG.
Holders of stock tokens on Binance will be eligible to receive dividends if and when they become available as well as benefit from stock splits.
Binance kicks off its new product offering with the introduction of Tesla stock tokens. The Tesla stock token is paired with the Binance USD stablecoin (TSLA/BUSD) and will have a minimum trade size of 1/100th per stock token.
At the time of writing, Tesla’s shares are trading at slightly above $700 which translates to a minimum trade size of about $7.
Unlike the trading of regular cryptocurrencies which takes place round the clock, the trading of stock tokens will only occur during traditional exchange hours.
On the first day of trading, Binance’s vice president of futures Aaron Gong reveals that the Tesla stock token recorded 10 million BUSD in volume.