The largest cryptocurrency exchange by trading volume Binance has launched tokenized stock trading with cryptocurrency for the very first time. The first-ever stock available on Binance to trade with crypto is Tesla stock.
Until Binance has begun to move on stock space, FTX and Bittrex global are the exchanges that are supported tokenized stock trading. However, Binance users are now able to trade on Tesla stock with BUSD. (Binance USD)
According to Binance, one Tesla stock represents one share of the Tesla company itself. The minimum trade amount is 0.01 of the token. Although a tokenized tesla share cost around $720 at the time of writing.
Tesla company seems to be working with cryptocurrencies as Elon Musk announced in March 2021, users in the U.S can buy a tesla car with Bitcoin. Well, I think this decision of Tesla, reasoned Binance to step forward with stock space and Tesla stocks. Besides, it is the largest automaker by market cap. With an announcement, Binance CEO and Founder Changpeng Zhao said,
“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,”
According to Binance’s vision, the launch of stock tokens opens up another avenue of growth for Binance and its users as it recorded a 346% user growth followed by 260% growth in total trading volumes.
The exciting thing is, Binance is not charging any commissions for stock trading which are meant to be “Commission-Free” As The Block reported, it has reached out to Binance and will update with Exchange’s business model around the stock trading service. However, Binance mentioned, it will continue to respond to the newly launched market demand by listing more stock tokens and launching more related features.