Binance, the biggest crypto exchange in the world, announces the launching of its zero-commission tradable stock tokens, aptly named the Binance Stock Tokens (BST), enabling its users to trade fractional stocks on their own volition. As per the announcement, all stock tokens would be denominated, collateralized, and settled by Binance USD (BUSD), the exchange’s native stablecoin.
The first in many more publicly tradable equity set to be featured in the BST is Tesla, which currently has a denominated share price of about $700. Rather than the conventional way of purchasing the share entirely, Binance users could now buy Tesla shares in fractions, even to as low as one one-hundredth of its total price share, which a digital token would then represent.
Binance clarifies that each digital token users could receive would represent one equity stock share. It is fully supported by a depository assortment of underlying securities that denominates the outstanding tokens. In summary, BST allows its users to trade fractional tokens, representing a company’s share freely.
The exchange further noted that the digital stock tokens trading would entirely be commission-free. The product it offers has been developed in partnership with the Germany-based investment company CM-Equity AG and Swiss tokenization firm Digital Assets AG. Furthermore, Binance states that at present, the particular trading is not available for countries with restricted jurisdictions, such as the United States and China, and a Know Your Customer (KYC) process will be strictly enforced.
Notably, trading for the aforementioned TSLA/BUSD pair opened last April 12, 2021, 13:35 UTC.