Cryptocurrency exchange Binance announced on Monday the launch of a new service whereby users can trade stock tokens without fee, with shares of tech giant Tesla taking the first listing
MOSCOW (Pakistan Point News / Sputnik - 12th April, 2021) Cryptocurrency exchange Binance announced on Monday the launch of a new service whereby users can trade stock tokens without fee, with shares of tech giant Tesla taking the first listing.
"Binance is delighted to announce the official launch of its zero-commission, tradable stock tokens, allowing the users to trade fractional stocks. Stock tokens are denominated, settled, and collateralized in BUSD. The first Binance Stock Token to be listed is Tesla Inc. (TSLA)," the company stated.
The opening of trade for the TSLA/BUSD pair has been scheduled for 01:35 p.m. GMT on Monday. All trading will be settled in Binance USD (BUSD), the company's native stablecoin pegged 1:1 to the US Dollar.
According to the company, Binance Stock Tokens are no-fee digital tokens that are backed by underlying securities. Such tokens are not equivalent to stocks, but they give their holders access to economic returns on the underlying shares, including potential dividends.
The trading will be open during traditional exchange hours and will not be available in mainland China and Turkey, among other "restricted jurisdictions." The minimum trade size is one hundredth of a token, meaning that users who cannot afford to purchase an entire share will be able to buy parts of the digital token.