Binance keeps developing its exchange platform to cater to different crypto needs. The platform now allows you to access tokens for Apple, Coinbase, and Tesla stock. However, what are Binance stock tokens? And, are they similar to owning actual stocks?
After Coinbase exchange joined NASDAQ on April 4, Binance came with COIN, a tokenized variety of Coinbase stock. They have now listed tokenized forms for Apple, MicroStrategy, Microsoft, and Tesla.
Also called synthetic digital products, TSLA, COIN, AAPL, MSTR, AND MSFT, you will find them on Binance as the virtual type of real-world assets. However, keep in mind that these assets have no clear legal framework. As with anything concerning cryptocurrency, everything comes first, then regulation afterward. If you are a crypto veteran, you probably understand that.
Do you want to learn about the currency stock tokens on Binance? Read this detailed content analyzing various facets that you may need to know concerning this version of assets.
What is a Binance Stock Token?
Firstly, you need to know that Binance is the current largest crypto broker as far as trading volume is concerned. The exchange has made another move, entering the traditional stock space. On April 12, the platform incorporated stock token crypto services to its clients. Were you their customer by then? Binance started with the token version for Tesla, followed by COIN. The exchange finalized its listing with Apple, Microsoft, and MicroStrategy on April, 30th.
Binance stated that the toke version represents their specific public company shares. The broker further claimed that a German firm, CM-Equity AG, uses its held shares to support the stock tokens. Is that a way of ensuring safety?
CM-Equity AG is a regulated financial company, monitored by BaFin, a Federal Supervisory Authority based in Germany. Licensed stockbrokers will count for that when you come to the US.
How are these tokens important in your crypto undertakings? You may redeem them to get dollar-backed stablecoin from Binance. Keep in mind that investors purchasing the stock tokens are dealing with CM-Equity AG as their counterparty.
Nevertheless, Binance stated that you can get dividends and take the underlying share movement to your advantage.
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