Binance cryptocurrency exchange is launching fractional tokenized Tesla shares to expand access to traditional assets without having to buy them in full.
Tesla, an electric vehicle company, will be the first tokenized stock from the stock market to be traded on Binance. As of today, Tesla’s share price is about $ 677. However, Binance users do not have to buy a “whole” share – the minimum purchase size is only one hundredth of a Tesla tokenized share, that is, less than $ 7.
Prices will be calculated in BUSD stablecoin, which is backed by US dollars and issued by the Paxos Trust. At the same time, holders of Tesla share tokens will receive the right to potential dividends, as when holding traditional shares. Each token is fully backed by real securities, and users will be able to trade fractional tokens without commissions.
The product was developed jointly with the German investment firm CM-Equity AG and the Swiss Digital Assets AG, specializing in asset tokenization. The service will be unavailable for citizens of China, Turkey and the United States. To start trading digitized Tesla shares, traders must go through the KYC process. Binance CEO Changpeng Zhao believes the new product will become a bridge between the world of traditional finance and cryptocurrencies. This will expand the access of the population to the stock markets.
Recall that at the end of last year, the Swiss bank Sygnum also tokenized its shares using the Ethereum blockchain and the Desygnate platform for this purpose. Sygnum management believes that this model of interaction with customers and partners can become an alternative to traditional methods of raising capital.
