Tesla Stock Token Can Now Be Traded On Binance Exchange
AI Trading

In partnership with a German-based investment firm and Switzerland’s Digital Assets AG, Binance, the largest crypto exchange by trading volume, is introducing zero commission tradable stock tokens.

For a start, Binance has listed Tesla stock tokens, indicating that the users of the exchange can now purchase Tesla tokens, which represent its shares.

Read Also: Berckmans to CZ Binance: Competitors Can Only Attack Ethereum Now, Table Will Turn Next Year

One Tesla stock token will represent one share of the company. Howbeit, users can purchase fractions of the token, with the minimum trade size being one-hundredth of the token.

AI Trading

Reacting to the new development, the CEO of Binance, Changpeng Zhao, popularly known as CZ, said:

“Stock tokens demonstrate how we can democratize value transfer more seamlessly, reduce friction and costs to accessibility, without compromising on compliance or security. Through connecting traditional and crypto markets, we are building another technological bridge for a more inclusive financial future.”

Read Also: Twitter’s Jack Dorsey Selling First Tweet Ever on Ethereum-Powered Service, Receives $88,888.88 In ETH Bid

Commission-Free Tradable Stock Tokens

According to the report, Binance is not charging any commission for trading stock tokens.

However, Sam Bankman-Fried, the CEO at crypto derivatives exchange FTX told The Block that while Binance is claiming that its service is “commission-free, the exchange could be charging a spread to create/redeem. Binance’s desk could be the only market maker.”

The report added that Tesla’s stock token will follow Nasdaq market hours since Binance’s service follows traditional market hours. On the other hand, Bittrex Global offers 24/7 tokenized stock trading.

According to a Binance spokesperson, stock tokens are fully backed and the trades are executed in real-time. Hence, trading of stock tokens follows the underlying stocks’ traditional hours.

Read Also: Binance Announces Support for Cardano (ADA)’s Mary Protocol Upgrade

The spokesperson added that “Each token is fully backed by a depository portfolio of underlying securities that represents the outstanding tokens. Our partner CM-Equity AG, a licensed and fully regulated asset management firm in Germany, entrusts the acquired shares to a third-party brokerage firm for custody. In addition, CM-Equity AG will be monitoring all trading activity for compliance.”

Follow us on Twitter, Facebook, Telegram, and Download Our Android App

AI Trading

HeraldSheets.com produces top quality content for crypto companies. We provide brand exposure for hundreds of companies. All of our clients appreciate our services. If you have any questions you may contact us. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors and the views expressed in them do not reflect the views of this website. Herald Sheets is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.

Solomon Odunayo

By Solomon Odunayo

Solomon Odunayo is an accomplished blockchain and cryptocurrency expert at Herald Sheets, known for his in-depth analysis and engaging articles that cater to both beginners and experienced readers. With a degree in Computer Science from the University of Lagos, Solomon leverages his technical background and keen understanding of the crypto space to provide readers with valuable insights and up-to-date news. His passion for innovation and commitment to staying current with industry developments make him a trusted voice in the digital currency community.