Blockchain is on its way to establishing its presence in every field. It is only natural that someone figures out a way to establish interoperability between the real-stocks and cryptocurrency.
Mirror Protocol pioneered this idea back in December 2020 by launching the first tokenized stock. This stock leveraged synthetic stocks as the tokenized representation. Binance, one of the largest crypto exchanges globally, has come up with the next advancement in this emerging asset class, pegging the tokenized stocks to the depository portfolio of concerned securities with the help of a German investment firm.
Binance released an official statement mentioning,” 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.”
This statement comes as a boost to the tokenized stock, ensuring that tokenized stockholders will be rewarded in terms of dividends similar to regular investors making these tokenized stocks at par with the latter in terms of monetary benefits.
With Tesla being the first security listed on Binance under this new segment of zero commission tokenized stocks, it is set to launch a new trading pair COIN/BUSD with Coinbase.
Binance has announced,” Binance will list the Coinbase Stock Token (COIN) following Coinbase’s official listing on NASDAQ.”
Binance and the other two involved companies have seen a positive response from its users and investors. The company also shares that it will continue to build partnerships with more equities in the coming time.
In the statement, Binance also mentions that it will support trading the traditional trading hours. This new asset class won’t be accessible to the residents of Turkey, Mainland China, and other jurisdictions with prohibitions on cryptocurrency.
Also, the interested traders will have to clear the ‘Know Your Customer’ and other mandatory compliances before trading in this latest and exciting trading asset class.