Leading cryptocurrency trading platform Binance has announced that it will list the tokenized shares of Apple, Microsoft, and MicroStrategy by the end of April.
The exchange’s users will be able to get exposure to Bitcoin-heavy MicroStrategy as soon as today. Apple and Microsoft stock tokens will be listed on the exchange on Apr. 28 and Apr. 30, respectively.
Binance made a foray into tokenized stock trading earlier this month. Elon Musk’s e-car manufacturer Tesla was the very first company on its list. It has added the fractional shares of rivaling cryptocurrency exchange Coinbase that went public on Apr. 14.
All tokenized stocks listed on Binance are denominated in the Binance USD (BUSD) stablecoin.
While similar products are also offered by FTX, Binance offers commission-free stock trading.
All stock tokens are fully backed by a corresponding portfolio of underlying securities.
It is worth noting that Binance’s stock tokens are only tradable during U.S. market hours.
Alex DovbnyaRegulatory scrutiny
Binance has come under fresh regulatory scrutiny over its new product that is supposed to democratize stock trading.
On Apr. 22, the Financial Times reported that the UK’s Financial Conduct Authority had started working with the exchange to determine whether or not the product falls within the country’s securities laws:
We cannot comment on the specific case due to confidentiality obligations. Fundamentally, however, the following applies: if tokens are transferable, can be traded at a crypto exchange and are equipped with economic entitlements like dividends or cash settlements, they represent securities and are subject to the obligation to publish a prospectus.
Binance’s users from the U.S., Turkey, and China are prohibited from trading stock tokens.
Godfrey Benjamin
Arman Shirinyan
Dan Burgin
Vladislav Sopov