Cryptocurrency exchange Binance now allows users to buy fractions of companies shares through its newly launched tokenized stock trading service, Yahoo! reported.
- Dubbed as Binance Stock Tokens, the service entails zero-commission digital tokens that qualify holders for returns, including dividends.
- The Binance product is backed by a depository portfolio of underlying securities managed by an investment firm in Germany.
- The product starts with Tesla shares which will be available as of 1:35 UTC April 12. It enables users to purchase as little as one-hundredth of the company’s share with prices settled in Binance USD (BUSD).
- The exchange’s native crypto Binance Coin (BNB) has surged over 25% in the last 24 hours to hit an all-time high of $637.44. It is priced at $590.51 as of writing.
- The first tokenized stock play in the crypto economy is Terra Labs’ Mirror Protocol which went live in December 2020. It uses synthetic stocks or tokenized representations of actual equities.