Binance has announced the launch of new equity tokens that can be exchanged for zero commissions. The launch took place today. These Binance Stock Tokens allow users to trade fractional shares, and are denominated, regulated and guaranteed in BUSD (Binance’s stablecoin). The first Binance Stock Token to be listed was Tesla Inc. (TSLA), trading on the TSLA / BUSD trading pair. Equity token trading will follow traditional exchange trading hours, however, and is not available to residents in some limited jurisdictions. Furthermore, in order to access the service, users will have to pass the KYC procedures, for anti-money laundering reasons.
What are Binance Stock Tokens?
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.Binance will continue to respond to market demand by listing more stock tokens and features. Trading of stock tokens will follow traditional exchange hours and is not available for residents in Mainland China, Turkey, and other restricted jurisdictions. Interested traders will be required to pass Know-Your-Customer and other relevant compliance measures.
However, these tokens do not confer any legal rights, therefore its holders are not entitled to legal or voting rights, and cannot participate in the company’s AGM.
