Binance Launches Tradable Stock Tokens, Starting with Coinbase and Tesla 


Crypto exchange giant Binance announced an expansion in investment offerings with the platform’s latest addition of stock tokens. What exactly are stock tokens? According to Binance’s blog post, these tradable tokens will enable potential crypto investors to gain exposure to the traditional stock market. They are zero-commission digital tokens that are fully backed and collateralized by a third party — which allows its price to be pegged to the underlying share price. Stock tokens are tokens that closely track the performance of traditional financial securities, particularly 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. In order to facilitate the sale and storage of stock tokens, Binance has partnered with investment firm CM-Equity AG and…

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