Binance cryptocurrency exchange today announced the launch of tradable stock tokens in Tesla. This is not a unique case and other cryptocurrency exchanges have already started trading Tesla tokens last year, which underlines the high interest and importance of Tesla as such.
Binance cryptocurrency exchange is launching Tesla tradable exchange tokens, which aim to allow a wider segment of the population to receive income from share investments without having to buy traditional shares in full. Unlike traditional shares, the exchange token can be divided into smaller and, accordingly, more affordable units.
Tesla will be the first publicly traded capital in the form of a Binance token. When purchasing shares, the owner must keep the physical share certificate and is obliged to buy the full traditional share. An exchange token allows users to buy fractional parts of one share, even just one-hundredth of its part. This makes buying and owning much easier and more affordable for a wider range of people.
“Each digital token represents one share of equity stock and is fully backed by a depository portfolio of underlying securities that represents the outstanding tokens. Users will be able to trade fractional tokens,” Binance said in a statement. Trading in digital stock tokens will be commission-free. It should be noted that share tokens are not exchangeable for shares.
Binance CEO Changpeng Zhao believes digital stock tokens will provide a bridge between traditional and cryptocurrency markets and expand access to stock markets, leading to a future of finance and investing that is more inclusive.
In early December, cryptocurrency exchange Bittrex Global launched trading in tokenized stocks like Apple, Tesla, and Amazon on its digital asset exchange. At the end of October, the FTX crypto derivatives exchange announced that it would allow users of the exchange to register to trade more than 12 pairs of stocks and cryptocurrencies, including Tesla. Thus, cryptocurrency exchanges seek to attract more diverse investors.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.