Binance is on a roll and is moving from one innovation to another. The latest of these is the company’s move to start tokenizing stocks.
The first stock in this class was Tesla’s, which received a good reception in the market, hitting a trading volume of $6.7 million in the first 72 hours of its launch. The next company that Binance wants to tokenize its stock is a rival crypto exchange company that is going live on NASDAQ today, Coinbase.
The listing on Binance is expected to happen in the UTC time zone which is after Coinbase might have gone public on NASDAQ.
Interested traders in the stock would need a verified Binance account that meets the necessary compliance regulations. This would allow them to trade the tokenized stocks of the Brian Armstrong led company under the trading pair of COIN/BUSD.
However, it is important to note that some countries are not allowed to participate in trading these tokenized stocks on the exchange. These countries include residents of The United States, Turkey, Mainland China and those from other restricted jurisdictions.
The tokenization of Coinbase stock is a big deal for crypto users considering that it is one of the largest crypto exchanges in the world. It is expected to be a mega listing, one that could rival that of Facebook.
That said, it will be interesting to see how Binance intends to settle the traded tokens as it has revealed little about this to the public.
