Largest Crypto Exchange Binance Adds Apple, Microsoft, MicroStrategy Stock Tokens
Leading cryptocurrency exchange Binance has listed three new stock tokens on its platform.
What Happened: Tokenized versions of Apple Inc (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and MicroStrategy Incorporated (NASDAQ:MSTR) will be made available for trading over the course of the week, according to the exchange's announcement.
The Microstrategy (MSTR/BUSD) tokens will be listed first at 9:30 AM ET on Monday, followed by the Apple (AAPL/BUSD) and Microsoft (MSFT/BUSD) trading pairs which will be listed at the same time on Wednesday and Friday, respectively.
In order to buy these stock tokens, users will first have to purchase BUSD, which is Binance’s stablecoin that is pegged to the value of the U.S. dollar.
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Each stock token represents one ordinary share of the relevant stock that trades on a traditional stock exchange.
They are backed by a depository portfolio of the underlying securities held by CM-Equity AG, and holders are entitled to economic returns on the shares, including dividends.
Why It Matters: The new stock token listings come two weeks after Binance listed tokenized versions of Tesla Inc (NASDAQ:TSLA) on its exchange.
These tokens quickly became the subject of scrutiny as some regulators raised concerns about a potential violation of local securities regulations.
The regulatory restrictions have resulted in these tokens only being made available to residents outside Mainland China, Turkey, and the United States.
Binance has said that the stock tokens are a CM-Equity product that is compliant with the EU’s Mifid II markets rules and BaFin’s banking regulations.
According to a report from the Financial Times, the UK’s Financial Conduct Authority is “working with the firm to understand the product, the regulations that may apply to it and how it is marketed.”
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