Binance, the global blockchain company behind the world’s largest digital asset exchange, today announces the launch of zero commission tradable stock tokens to broaden access across traditional capital and cryptocurrency in cooperation with CM-Equity AG, a licensed investment firm in Germany, and Swiss-based Digital Assets AG, an asset tokenization platform. Each digital token represents one share of equity stock and is fully backed by a depository portfolio of underlying securities that represents the outstanding tokens. Users will be able to trade fractional tokens.
The first stock tokens announced will be of Tesla, the largest automaker by market capitalization, and their minimum trade size is one-hundredth of a stock token, representing the same fraction of a Tesla share. Stock tokens are priced and settled in Binance USD (“BUSD”), a regulated stablecoin pegged to the U.S. dollar and issued by Paxos Trust Company.
Stock tokens enable greater financial participation by fractionalizing a highly sought-after asset class of publicly-tradable equities into more affordable units. Holders of stock tokens qualify for capital returns on the underlying equity, including potential dividends and stock splits, as they would from holding traditional shares.
Binance users who are knowledgeable about crypto’s fractional properties can now diversify into equity assets using a digital currency and platform they are familiar with. Conventional investors can access equities in smaller quantities as well as gain exposure to the fast-growing crypto market through the largest and most liquid digital asset exchange. In Q1 2021 Binance recorded growth of 260% and 346% in traded volume and users respectively, while the total market value of cryptocurrencies recently surpassed $2 trillion, indicating accelerated adoption.
“Binance serves many users around the world and we are very pleased to be able to help them participate in the equity market. 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,” said Changpeng “CZ” Zhao, CEO of Binance.
“We are a team of people-focused entrepreneurs, capital market specialists, software engineers and financial regulatory experts. Our combined expertise is behind the launch of our stock tokens. CM-Equity AG and Digital Assets AG, as the engineers of the product, are pleased to pioneer an innovative experience on the Binance platform. This new kind of token combines different asset classes that are offered in one single marketplace for instant settlement in a compliant, scalable and sound format.” said Michael Kott, CEO of CM-Equity AG.
Binance will continue to respond to market demand in listing more stock tokens and features. Trading of stock tokens will follow traditional exchange hours, and is not available for residents in the U.S., mainland China, Turkey, and other restricted jurisdictions. Interested traders will be required to pass Know-Your-Customer and other relevant compliance measures.
About Binance Exchange
Binance is the world’s leading blockchain and cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. Trusted by millions worldwide, the Binance platform is dedicated to increasing the freedom of money for users, and features an unmatched portfolio of crypto products and offerings, including: trading and finance, education, data and research, social good, investment and incubation, decentralization and infrastructure solutions, and more. For more information, visit: https://www.binance.com.
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CM-Equity AG is a Germany based investment firm with multiple financial service licenses. The company offers Fintechs and Digital Asset Exchanges a regulatory compliant licence roof with an API-driven scalable infrastructure framework. The firm itself is a pioneer in digital asset management & brokerage and is trusted partner of the leading companies in Digital Asset World. For more information, visit: https://cm-equity.de/en/
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About Digital Assets AG
Swiss based Digital Assets AG (www.digitalassets.ag) is the leading boutique firm focused on the design, structuring and the issuance of tokenized financial products. Digital Assets AG drives innovation in capital markets and builds bridges in between TradFi and DeFi with its partners such as FTX, Alameda, Bittrex and many others.