Binance has announced that it is foraying into the world of tokenized stocks — with Tesla becoming the first to be listed.
The move means that Binance users can trade fractional TSLA shares through the exchange.
Binance Stock Tokens are denominated, settled and collateralized in BUSD, and the company says that these digital assets attract zero commission.
The tokens are also fully backed by Tesla shares — and owners will have the opportunity to receive any dividends that are issued by the electric vehicle manufacturer.
More stocks are set to be onboarded by the exchange in the not-too-distant future, and a number of other features are set to be unveiled in the coming months.
The Appeal of Fractional Stocks
Fractional stocks have started to gain appeal, especially among those who are investing on a budget.
On the equities markets, shares can only be bought and sold whole. This can make investing in a company like Amazon, which has a share price of $3,373, rather offputting.
Binance Stock Tokens will enable investors to buy as little as 1% of a Tesla share in tokenized form, which at the time of writing would be worth $7.
On Twitter, Binance CEO Changpeng Zhao wrote:
“Thanks to @elonmusk for bringing crypto to Tesla, so we're bringing Tesla to crypto.”
Binance Coin Surges
Binance Coin has been performing strongly in recent days. It crossed $500 for the very first time on Sunday, and later surged to highs of $638.57 on Monday.
At the time of writing, CoinMarketCap data shows the No. 3 cryptocurrency has surged by 17.25% over the past 24 hours, and 54% in seven days.
Tesla is up 3% in intraday trading, but remains some way off the 52-week highs of $900.40 seen in January.
(Disclaimer: CoinMarketCap is owned by Binance.)