Binance for its part is one of the world’s largest exchanges in terms of cryptocurrency. Today, it announced Zero-Commission, Tradable Stock Tokens with Tesla being the first.
“Binance Stock Tokens are zero-commission digital tokens fully backed by a depository portfolio of underlying securities that represents the outstanding tokens. Holders of stock tokens qualify for economic returns on the underlying shares, including potential dividends.”
The price of a Tesla token is linked to BUSD which, in turn, is a cryptocurrency attached to the value of the United States Dollar.
The first Binance Stock Token to be listed is Tesla Inc. (TSLA). Trading for the TSLA/BUSD pair is scheduled to open at 2021-04-12 1:35 PM (UTC). Users will be able to trade fractional Tesla stock on the Binance website.
What makes the new approach so interesting is the fact it allows people to buy a fraction of a token, whereas people can’t do the same with traditional shares.