Binance Coin is gaining at an exponential rate and is currently close to hitting $600. While the overall bullish momentum in the market has a role in it, the innovativeness of the Binance exchange is the key driver. Today, the exchange has announced that it would be tokenizing traditional stocks and that the first of these stocks would be Tesla.
This is a big deal considering that Tesla is one of the most hyped stocks in the market, thanks to Elon Musk. It is also the world’s most valuable car company. While Tesla stock is currently at over $700, Binance will split it into fractions allowing investors of all sizes to profit from its value appreciation. As such, users of the exchange will be in a position to buy a unit as small as 1/100 of a Tesla stock.
Commenting on this development, Tesla has stated that every one of the digital tokens will represent a unit of a whole of the Tesla stock. The company has also stated that each of the units sold will be backed by a portfolio of the underlying stock asset. It also stated that the stock tokens will be settled in Binance USD.
What is even more interesting is that Binance will not charge a commission for trading stock tokens. This is a factor that could create lots of liquidity in this market, and drive up adoption, and more inclusivity in investments. According to the exchange CEO Changpeng Zhao, the tokens are a vital link between the crypto markets and the traditional stock markets.