Binance is one of the world’s leading exchanges and platforms for cryptocurrency trading. It has been revealed that stock tokens belonging to MicroStrategy, Apple, and Microsoft will be listed on this major cryptocurrency trading platform soon. The listing is currently scheduled to take place towards the end of the month, and through it, Binance’s clients will be allowed to gain additional exposure. The BTC-heavy MicroStrategy shall be listed later today, with Apple stock tokens and Microsoft stock tokens said to be listed on the 28th and 30th of April 2021, respectively.
Tokenized stocks to be denominated through BUSD
This isn’t even the first time that Binance had ventured into the world of trading with tokenized stocks, as billionaire Elon Musk’s Tesla had been the initial company to be listed on the platform. Since then, Coinbase’s fractional shares have also been added after the rival crypto exchange had gone public on the 14th of April 2021.
Furthermore, every tokenized stock that will be listed on Binance will be denominated through the BUSD (Binance USD) stablecoin. In related news, although FTX offers similar products, Binance, on the other hand, is providing stock trading that is free of any commissions. Moreover, all of the stock tokens have been completely backed by several underlying securities as well in an effort to offer increased protection. It should also be mentioned that it will only be during U.S market hours that the stock tokens shall be made available for trading.
Increased regulatory surveillance
Despite the recent success, Binance has nevertheless fallen under increased scrutiny from regulators regarding the new product through which democratization of stock trading is to be made possible. To this end, the United Kingdom’s Financial Conduct Authority had recently begun coordinating with the platform in the hopes of determining whether the product can be used in accordance with the nation’s various securities laws.
Lastly, users who are based in China, Turkey, or the United States will not be allowed to trade with the stock tokens. This has led to some understandable backlash, but the decision had been reached whilst keeping the aforementioned countries’ local laws and restrictions in mind.
The native cryptocurrency of the Binance cryptocurrency exchange known as Binance Coin (BNB) has also experienced considerable success in the past few months, where it managed to go from a price of about $50 to an all-time high of $600. As of the time of this writing, BNB’s price is approximately $539, which is a 10% increase within the past 24 hours.