The first stock tokens on Binance will be of Tesla Inc., the largest automaker by market capitalization. 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.
How Stock Tokens Open Up More Markets For Our Users
Stock tokens make it easier for Binance users* to gain access to highly sought-after assets like stocks. We offer these unique advantages to traders, such as:
\* Liquidity. Adding stock tokens to Binance makes it possible for investors to trade both crypto and traditional assets, straight from the world’s biggest crypto exchange by trading volume.
\* Flexibility. We are making it possible for users to trade fractions of a unit of publicly tradable equities, turning them into more affordable units that have lower barriers of entry.
\* Access to Traditional Stock Benefits. Holders of stock tokens qualify for capital returns on the underlying equity, including potential dividends and stock splits, as they would from holding traditional shares.
\* Access to our Crypto Financial Suite. Aside from trading benefits, we also offer a wide-ranging suite of crypto financial services that augment your trading experience, from loans and savings products to liquidity pools and token launch platforms.
“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,” said Changpeng “CZ” Zhao, CEO of Binance.
During the first quarter of 2021, Binance recorded a 346% growth in users, fueling a 260% growth in total trading volumes. As the total market value of cryptocurrencies shoots past $2 trillion, indicating accelerated crypto adoption, the launch of stock tokens opens up another avenue of growth for both Binance and its users.
Possibilities from Within and Outside of Crypto
Our launch of stock tokens opens up new opportunities for both crypto and traditional investors. Binance users who are knowledgeable about crypto’s fractional properties can now diversify into equity assets using a digital currency and platform they are familiar with. Meanwhile, conventional investors can access equities in smaller quantities and gain exposure to the fast-growing crypto market through the largest and most liquid digital asset exchange in the world.
The launch of Binance stock tokens is made possible through our collaboration with CM-Equity AG, a licensed investment firm in Germany, and Swiss-based Digital Assets AG, an asset tokenization platform.
“We are a team of people-focused entrepreneurs, capital market specialists, software engineers, and financial regulatory experts. Our combined expertise is behind the launch of our stock tokens. 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.” said Michael Kott, CEO of CM-Equity AG.
Binance will continue to respond to market demand by listing more stock tokens and launching more related features.
\* Trading of stock tokens will follow traditional exchange hours. Stock tokens are not available to residents in mainland China, Turkey, and other restricted jurisdictions. Interested traders will be required to pass Know-Your-Customer and other relevant compliance measures.
