Cryptocurrency exchange Binance is expanding its stock token listings with the addition of three new tokenized stock pairings. According to a company announcement on April 26th, Binance the new listings will include stock tokens tied to Microstrategy (MSTR), Apple (AAPL), and Microsoft (MSFT) stock.
Each of these tokens allows its owner to holder or trade fractionalized shares of the stocks they are associated with. The minimum trading amount is set at one-hundredth of a token, which equates to one-hundredth of a stock.
AAPL, MSTR, & MSFT stock tokens will begin trading before the end of April
Binance’s MSTR stock tokens will launch on April 26th at 1:30pm UTC. The AAPL tokens are slated to launch at 1:30pm UTC on April 28th, and the MSFT tokens will be available at the same time on April 30th. Each of the tokens will be tradable during traditional stock trading hours, and are only tradable against BUSD, Binance’s stablecoin.
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The exchange says that each of the stock tokens is “fully backed by a depository portfolio of underlying securities” held by CM-Equity AG, a financial services provider based in Germany. The tokens are not available to residents of the United States, Turkey, China, or other jurisdictions restricted by CM-Equity. The tokens can be traded on Binance’s website.
Binance will launch more stock tokens over time–a bid to compete with FTX?
The newest stock tokens follow the positive performance of Tesla (TSLA) and Coinbase (COIN) stock tokens that were listed on the platform earlier this month.
According to CoinTelegraph, the exchange’s foray into stock tokens appears to be an attempt to compete with Hong Kong-based derivatives platform FTX, which launched fractionalized stock token trading in October of last year.
Binance is also seeking to expand its range of stock tokens further. According to the company’s announcement, “Binance will monitor market demand and look to provide a channel to more Stock Tokens issued and sold by [CM-Equity].”