Update (14th April 2021): Binance adding Coinbase’s Stock Token in addition to Tesla today, shortcode is going to be COIN.
While Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB) and other altcoins prices are surging & rapidly growing, Binance skyrocketed the cryptomarket hype into a new level with it’s Stock Tokens Trading system.
Introducing tradable stock tokens on #Binance!
Trade digital tokens that represent fully backed shares of equity stock.
First stock token listing: @Tesla Inc. $TSLA
— Binance (@binance) April 12, 2021
First Binance stock token is going to be TESLA Inc. with a short code of TSLA according to the latest post of Binance regarding the digital stock token listing.
Fellow Binancians,Binance is delighted to announce the official launch of its zero-commission, tradable stock tokens, allowing the users to trade fractional stocks. Stock tokens are denominated, settled, and collateralized in BUSD.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.
This announcement just published before the 15th BNB burn, such a coincidence. 🙂
What do Stock Tokens mean for Cryptocurrency and Traditional Investors?
This is huge and this can be the new era for Cryptocurrency & Stock markets. Why? This is a first step of the bridge which merge cryptocurrency exchanges into stock markets. Even more; this seems as a baby step for now, but every stock in the market might be tokenized in the near future.
Think big: You can buy Amazon, Apple, Samsung, Alphabet (Google) stocks and more on Binance or on other cryptocurrency exchanges. And vice versa; you could buy Bitcoin, Ethereum, BNB on Nasdaq! Especially the second part is going to take some time, but this is really the beginning!
Here is an important point to mention; these stocks are backed by real share of equity stocks.
Each stock token on Binance will represent one share of equity stock, which is fully backed by shares stored in a depository portfolio of underlying securities, in cooperation with investment firm CM-Equity AG and asset tokenization platform Digital Assets AG.
Short story long: if you purchase a TSLA stock on Binance; their German partners are going to purchase the share from the stock market. So all stock token investments made by Binance are going to be fully backed which means real.
What is Tesla Inc. (TSLA) Stock?
Tesla is the largest automaker by stock market capitalization. Elon Musk is the co-founder and CEO of Tesla, he also leads critical product design to engineering and manufacturing of the company’s electric vehicles and products. Tesla according to Wikipedia:
Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla’s current products include electric cars, battery energy storage from home to grid scale, solar panels and solar roof tiles, as well as other related products and services. Tesla is ranked as the world’s best-selling plug-in and battery electric passenger car manufacturer, with a market share of 16% of the plug-in segment (which includes hybrids) and 23% of the battery electric (purely electric) segment 2020 sales. Through its subsidiary SolarCity, Tesla develops and is a major installer of solar photovoltaic systems in the United States. Tesla is also one of the largest global suppliers of battery energy storage systems, with 3 GWh of battery storage supplied in 2020.
Elon also well-known with his interest in crypto world. His recent tweets about crypto markets, Bitcoin and Doge coin really hyped the market. Tesla Inc. also invested officially to Bitcoin and announced that they are going to accept payment as Bitcoin (BTC). So, it’s no surprise for us that they are the first Stock Token on Binance as TSLA.
Wait, what?
Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency.
Yes! That’s more than accepting payment via cryptocurrency, that’s the future.
Conclusion About Stock Tokens on Binance
Binance did not surprise us at all as a leading and innovative cryptocurrency exchange with this fantastic move. We are sure that more Stock Tokens are going to follow TSLA and they are going to be tokenized by the end of 2021. More interestingly, we assume more exchanges will join the trend and they will compete with each other to list the most famous tokenized stocks which will bring more customers.
All it means that cryptocurrency market will continue to grow, faster than ever…
