Binance Starts Offering Stock Tokens

Crypto exchange Binance​ is launching zero-commission, tradable stock tokens. Binance clients can now access both cryptocurrency and traditional stock markets.

Each stock token on Binance will represent one share of equity stock, which is fully backed by shares stored in a depository portfolio of underlying securities. The launch of Binance stock tokens is made possible through its collaboration with CM-Equity AG, a licensed investment firm in Germany, and Swiss-based Digital Assets AG, an asset tokenization platform.

The first stock tokens on Binance will be of Tesla Inc., the largest automaker by market capitalization. Tesla stock tokens on Binance will have a minimum trade size of one-hundredth of a stock token, representing the same fraction of a Tesla share. Stock tokens are priced and settled in Binance USD (BUSD), a regulated stablecoin pegged to the U.S. dollar and issued by Paxos Trust Co.

"Binance serves many users around the world and we are very pleased to be able to help them participate in the equity market. Stock tokens demonstrate how we can democratize value transfer more seamlessly, reduce friction and costs to accessibility, without compromising on compliance or security. Through connecting traditional and crypto markets​, we are building another technological bridge for a more inclusive financial future," said Changpeng "CZ" Zhao, CEO of Binance.

During the first quarter of 2021, Binance recorded a 346% growth in users, fueling a 260% growth in total trading volumes. As the total market value of cryptocurrencies shoots past $2 trillion, indicating accelerated crypto adoption, the launch of stock tokens opens up another avenue of growth for both Binance and its users.

Binance continues to respond to market demand by listing more stock tokens and launching more related features. Last month, the crypto exchange giant rolled out the crypto payment "Binance Pay"​, which allows its users to pay and get paid in crypto without incurring any fees.