Binance is launching into the cryptocurrency space tradable stock tokens, which are designed to enable the wider public to lock in stock returns, including potential dividends, without the need to purchase full traditional shares.

The first stock listed in the form of a token in Binance will be Tesla, which is currently hovering around the $ 700 mark. Instead of purchasing a full traditional share, which requires an actual share certificate, users can purchase no more than one-hundredth of Tesla, represented by a digital code. Binance stated:

Each digital token represents a fraction of the stock block and is fully supported by the Ameen Securities Core Wallet that represents the issued tokens. Users will be able to shop for species. ”
Thus, the hundredth portion of the stock symbol represents the same share of Tesla stock, and the stock quotes will be calculated in Binance USD (BUSD), a US dollar-linked stacked currency issued by the Paxos Trust. Share tokens cannot be exchanged.

Changpeng Zhao, CEO of Binance, believes that digital stock tokens will connect traditional currency markets with cryptocurrency markets and expand access to stock markets, leading to a “more inclusive economic future”.

Trading in digital stock symbols will be commission-free and the product was developed in cooperation with the licensed German investment company CM-Equity AG and the Swiss asset coding platform Digital Assets AG. Participation in their trading is not open to restricted jurisdictions such as China, Turkey, and the United States, and it is imperative to complete the Know Your Customer process to qualify as a digital exchange trader on the exchange.

According to today’s announcement, Binance’s first quarter of 2021 has been strong, with sales up 260% and users up 346%. Meanwhile, the original Binance Coin (BNB) token is up more than 900% this year.