Binance, the world’s leading blockchain and crypto infrastructure provider, has just announced the launch of zero commission tradable stock tokens in cooperation with German licensed investment firm CM-Equity AG and Swiss-based asset tokenization platform Digital Assets AG, according to a press release shared with iHodl.
These new stock tokens, which have been created to broaden access across traditional capital and crypto, allow users to trade fractional tokens. In particular, each represents one share of equity stock, and is 100% backed by shares by a depository portfolio of underlying securities that represents the outstanding tokens.
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It must be noted that the first stock tokens to be launched by Binance will be of US electric car maker Tesla Inc. with a minimum trade size of one-hundredth of a stock token, representing the same fraction of a Tesla share. However, Binance will continue to respond to market demand in listing more stock tokens and features in the future.
Stock tokens are priced and settled in the exchange's native token Binance USD (BUSD).
Stock tokens allow retail investors to invest in the companies of their choice by lowering the entry barrier by fractionalizing a highly sought-after asset class of publicly-tradable equities into more affordable units.