Binance cryptocurrency exchange has launched zero-commission, tradable stock tokens, the first of which is Tesla.
Crypto exchange Binance has announced the launch of zero-commission tradable stock tokens that allow users to trade in fractional stocks. All stock tokens are denominated, settled and collateralized in Binance USD (BUSD), a US dollar-denominated stablecoin.
The first Binance Stock Token (BST) to be listed is Tesla Inc. Trading for the TSLA/BUSD pair will open at 13:35 UTC on April 12, 2021.
Binance stock tokens are digital tokens that are backed by a portfolio of underlying securities.
Holders of these tokens qualify for economic returns on the underlying shares, including potential dividends, per the Binance website.
While the TSLA stock token is the first to be listed, the exchange intends to “respond to market demand” by listing more stock tokens and features in the future.