By Samuel Indyk
Investing.com – Cryptocurrency exchange Binance has today announced it will be adding stock tokens to Binance.com for Microstrategy, Apple, and Microsoft. Users will be able to trade these tokens on the Binance website.
What are Binance stock tokens?
Binance stock tokens are tokens of stocks that trade on stock exchanges. Each token represents one ordinary share of the relevant stock and will be fully backed by a depository portfolio of underlying securities held by CM-Equity. Holders of the stock tokens will qualify for economic returns on the underlying shares, such as any potential dividends.
Key dates
The MicroStrategy (NASDAQ:MSTR) stock tokens will begin trading on 26th April at 13:30UTC (14:30BST). Microstrategy is a business intelligence company but holds a number of Bitcoins on its balance sheet. At its update in February, Microstrategy said it held 90,531 Bitcoins, which were acquired at an average price of $23,985.
The Apple (NASDAQ:AAPL) stock tokens will begin trading on 28th April at 13:30UTC (14:30BST) and the Microsoft (NASDAQ:MSFT) stock tokens will begin trading on 30th April at 13:30UTC (14:30BST).
Each stock token will allow the owner to trade fractionalised shares of the associated stock with the minimum amount set to one-hundredth of a token, equal to one-hundredth of the underlying stock.
These issuance of new stock tokens follow the launch of stock tokens for Tesla (NASDAQ:TSLA) and Coinbase (NASDAQ:COIN), which were listed on Binance earlier in April. Tesla’s token began trading on 12th April and Coinbase began trading after its public listing on 14th April.
Going forward, it appears Binance will look to further expand their offering of stock tokens. The exchange said they will monitor market demand and look to provide a channel for more stock tokens issued and sold by CM-Equity.