Apple, Microsoft and Microstrategy stock tokens will be traded on Binance
Binance, one of the largest cryptocurrency exchanges in the world, announced that they will make available stock tokens from Apple, Microsoft and Microstrategy. These are tokenized versions of assets traded on the Nasdaq stock exchange and which have become the subject of controversy involving regulatory bodies.
The new tokens will be rolled out gradually over the course of this week.
Thus, Binance now offers a total of five types of tokens, since it has already launched digital assets equivalent to Tesla (TSLA) and Coinbase (COIN) shares throughout April. The broker is one of the few in the world that offers this type of crypto, in addition to the Bittrex Global and FTX exchanges.
The new type of crypto was launched at Binance on April 12, initially offering a token backed by Tesla’s stock performance. Essentially, these digital assets are equivalent to a stock of a particular company traded on the stock exchange. However, due to legal restrictions, its offer is prohibited in the United States, China, Turkey and some other countries.
Both the price and the benefits involved in the original share are passed on to the token, making the owner also entitled to dividends and other advantages linked to the original asset, except for voting rights. Binance explained in a publication on the exchange’s blog that this new derivative allows the trading of fractional shares, bringing greater liquidity to the market and allowing smaller initial investments.
Apple shares, for example, can now be acquired indirectly as crypto through Binance. These stock tokens are traded with the exchange’s native stablecoin, Binance USD (BUSD), which is backed by the dollar. The broker also states that no commissions are charged on transactions, which offers an alternative to entering the stock exchange by paying less fees.