You can now buy stock tokens on Binance. The company launched its first stock tokens on April 12th. Yesterday, it has announced plans of launching stock tokens of the three big companies i.e Microstrategy, Apple and Microsoft.
Crypto exchanges are now expanding into the stock trading arena. The Hong Kong-based crypto trading exchange FXT led the way by launching fractionalized stock trading in October 2020. Binance, in keeping up with the competition, has also listed shares of Coinbase (COIN) and Tesla (TSLA) on its platforms. Customers can trade the tokens against Binance Stablecoin BUSD.
Microstrategy, Apple, and Microsoft Stock Tokens:
Binance has announced the plans to list three new stock tokens. These tokens are for the companies such as Microstrategy (MSTR), Apple (AAPL), and Microsoft (MSFT). Users can trade fractions of these shared tokens.
The MSTR tokens on Binance are set to go live at 1:30 PM UTC on Monday. On the other hand, AAPL tokens will launch on Wednesday and MSFT tokens on Friday, respectively.
According to Exchange, the tokens are fully backed by “depository portfolios of the underlying securities” by German financial services provider CM-Equity AG. Moreover, the trading tokens will be according to traditional stock trading hours.
Financial regulators are likely to do some checks for token compliance. European regulators are already up for it.
European regulators are examining whether Binance, one of the world’s biggest cryptocurrency exchanges, has complied with securities rules over its launch of trading in stock tokens.#biance #cryptocurrency pic.twitter.com/n6Chtspp80
— CN Wire (@Sino_Market) April 22, 2021
Binance stock tokens are, however, available in limited countries. People residing in the United States, Mainland China, Turkey, and other areas restricted by CM Equity will not be able to Buy stock tokens on Binance.