Binance stock tokens Tesla and Coinbase

Binance Stock Tokens Tesla and Coinbase

Binance is now offering trading with stock tokens. Binance stock tokens are ideal for crypto traders who may want to diversify their investment into traditional financial markets.

As a start, Binance have launched Tesla and Coinbase.

Why did Binance start with Tesla and Coinbase?

Well, both are highly related to crypto and have great trading volumes.

Binance is the best crypto exchange and trading platform. However, if you are US citizen you must consider another of our top Bitcoin trading sites.

What is Binance crypto exchange?

Binance is the best crypto exchange. The reasons for this are simple.

  1. Binance is offering the lowest fees
  2. Binance has among the most available markets (both fiat and crypto)
  3. Binance has the most trading features
  4. Binance has the most features beside trading
  5. Binance has great deposit and withdrawal options
  6. Binance has great trading volumes which ends up in low slippage and tight spreads
  7. Binance has a desktop and a mobile version
Read the full Binance review for more information.

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What are Binance stock tokens?

Binance stock tokens are tokens that closely track the performance of traditional financial securities. As a start, those tokens particularly tracks shares of publicly traded companies.

Stock tokens are delta-one products that are backed by physical shares. This means for a given instantaneous move in the price of the underlying asset there is expected to be an identical move in the price of the derivative.

Trade Binance stock token VS Shares

With Binance stock tokens you can purchase fractional shares which is not possible with traditional shares.
 
For instance, not everyone can afford to buy a full Tesla stock for $700. With Binance stock tokens you can buy 0.01 piece of the share instead of an entire unit.
 
In addition, Binance does not charge any commission for stock token transactions.
Still, remember that there is always a spread and this you can never avoid in any market.
 
Holders of Binance stock tokens will get all the benefits such as dividends and other economic benefits of holding the underlying stock. Other corporate actions such as stock splits are supported as well.
 
However, token holders are not entitled to voting rights because these are synthetic assets and not real shares. Morpher trading platform is another trading platform we have covered that also supports trading with synthetic stocks. They have several hundred of stocks while Binance only support Tesla and Coinbase, so far.

How is the Binance stock token denominated and settled?

The Binance stock tokens are denominated, settled, and collateralized in BUSD.
 

What does this mean?

It means that you need BUSD to buy Binance stock tokens. Further, when you sell you will receive BUSD in your account. For instance, 
1. You buy Tesla stock token for $100 BUSD
2. Tesla stock price increase 10%
3. You sell all your Tesla stock token
4. Now, you have $110 BUSD in your account.

 
Binance stock tokens are settled in cash. Furthermore, stock tokens are non-fungible. Users must buy and sell only at Binance. Tokens are not transferable to other exchanges.
 
What does this mean?
It means there will be no physical redemption of underlying shares.
 
Stock tokens are created on collateral held by a third party. Therefore, each token represents a share in a publicly listed company. This way, the token’s price is pegged to the price of the underlying shares.

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Who can trade Binance stock tokens?

Not everyone can trade the Binance stock token, unfortunately.
To be eligible to trade the Binance stock token you must have completed Level 2 KYC, including ID and face verification. Further, German users must complete a Level 3 KYC verification (proof of address, more advanced identity checks, complete risk assessment, and suitability questionnaire).
 
Note: Users from Mainland China, Turkey, the U.S, and other restricted jurisdictions are prohibited from trading stock tokens.
 
 

Are Binance stock tokens regulated?

Each token is fully backed by shares held by, CM-Equity AG, a licensed and fully regulated asset management firm in Germany.
 
CM-Equity AG entrusts the acquired shares to a third-party brokerage firm for custody.
 
In addition, CM-Equity AG will be monitoring all trading activity for compliance.
 
 

How to trade Stock Tokens on Binance?

To be able to trade Binance stock tokens you must have BUSD in your account.

If you dont have BUSD you can easily exchange almost any asset on Binance into BUSD.

Once you have BUSD in your account.

 

  1. Click Trade on the top menu
Binance stock token from top menu print screen

2.Choose the token you want to trade, and click “Trade”

3. Now, you will get into the trading interface where you can buy or sell the Binance stock token.

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What are the trading hours for Binance stock tokens?

Trading hours will be in harmony with the underlying exchange (NYSE/NASDAQ = 9:30 am – 4 pm EST). Outside of trading hours, there will be no price updates or orders permitted.

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