Binance announced a big news this Monday (11) involving tokens and the stock market. The exchange will now allow the purchase of shares through its platform.
According to the announcement, Binance will trade tokens that will represent shares in major US companies. Each token will be backed by an action from your equivalent company.
For the launch, the exchange partnered with investment firm CM-Equity AG and the asset tokenization platform Digital Assets AG. Both will have a deposit portfolio in which the shares of those who invest by Binance will be kept in custody.
Each token will be quoted in Binance USD (BUSD). Stablecoin is issued by the exchange itself and backed by 1 to 1 in the United States dollar (USD).
Tesla to be first listed share
To inaugurate the service, Binance announced that the first shares listed on the platform will be Tesla’s. The company is the world’s largest car manufacturer by market value.
It is also part of the S&P 500, the main US stock index. And for Bitcoin enthusiasts, the company has a 48,000 BTC mattress in the box.
“Tesla’s share tokens at Binance will have a minimum trading size of one hundredth of a share token, representing the same fraction of a Tesla share. Stock tokens are quoted and settled in Binance USD (BUSD) ”, announced the exchange.
Binance also announced that it will list new shares according to demand. She also stated that she has plans to include future stock markets on her platform.
Investment ease and diversification
According to Changpeng “CZ” Zhao, founder of Binance, the stock investment option seeks to help platform users to diversify their investments.
“Stock tokens demonstrate how we can democratize value transfer in a more integrated way, reducing friction and accessibility costs. All of this without compromising compliance or security, ”he said.
The purchase can be made in a fractional way in up to 1 hundredth of a share. Thus, an entire Tesla share costs R $ 3,900 at the time of writing this article. At Binance, customers will be able to buy fractions starting at R $ 39.
Finally, tokens will give investors the same shareholder rights. It will be possible to vote at the company’s meeting, receive dividends and have capital gains on the sale of the shares.
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