Recently, the cryptocurrency trading platform Binance announced the launch of a zero-commission tradable equity token called Binance Stock Tokens, allowing users to trade scattered stocks.
Tesla will be the first equity token to be listed and plans to open several trading on the platform on April 12. Well-known the equity tokens of the platform are denominated in BUSD, settled, and mortgaged.
Binance’s equity tokens are backed by a portfolio of underlying securities. Therefore, token holders will be suitable for the return of the underlying stock.
Moreover, official statements indicate that users in mainland China, Turkey, and other restricted jurisdictions cannot trade the token.
At present, Tesla is the only company supported by the Binance Equity Token Program. The platform has stated that if investors show sufficient interest, more equity tokens may appear in the future.
A few months ago, Musk himself has been on the platform for cryptocurrency. Additionally, to advocating Dogecoin, he also supports Bitcoin that he believes is “about to gain widespread acceptance by traditional financial professionals.”
And given that Tesla is also an automaker that admits Bitcoin as a payment, it is quite symbolic as Binance’s first equity token.