Tron – Binance Launches Trading Stock Token; Starts with Tesla | Fintech zoom

Binance, the cryptocurrency exchange, announced the start of tokenized stock trading in collaboration with CM-Equity AG, a licensed investment firm in Germany, and Digital Assets AG, a Switzerland-based platform for the tokenization of assets. This made Tesla Inc. the first Binance Stock Token listed with the TSLA / BUSD trading pair, which went live on April 12th.

With this development, the users of the platform can acquire fractions of the actual Tesla shares [which was trading at around $677]. However, it is not available to residents of the United States, mainland China, Turkey, or any other restricted jurisdiction.

According to the official Press release, Binance Stock Tokens are Commission-free digital tokens which are fully backed by a portfolio of underlying securities, which essentially represents the outstanding tokens. Owners of share brands are entitled to returns on the underlying shares, including dividends.

The main goal of Binance’s latest move is to lower the bar for prospective investors to get into high-priced stocks.

Shortly after the announcement, the CEO of the Malta-based exchange, Changpeng “CZ” Zhao, thanked Tesla boss Elon Musk all in one Tweet and further claims

“Stock tokens show how we can democratize the transfer of value more seamlessly, reduce friction and costs for accessibility, without having to compromise on compliance or security. By connecting traditional markets and crypto markets, we are building another technological bridge for a broader financial future. “

CZ also noted that the introduction of the Binance share tokens opens up new opportunities not only for crypto investors but also for traditional investors. This introduction would allow users on the platform with adequate knowledge of the fractional properties of crypto to branch into equity investments using a familiar cryptocurrency and platform.

Binance coin [BNB] Price react positively

The exchange’s native token BNB saw a 53.34% gain over the past week and was currently trading at a price of $ 576.80 as it continued to float close to its ATH. In fact, it is up over 3% on the past day, further strengthening its position as the third largest crypto asset by market capitalization.

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