Binance, the world’s largest cryptocurrency platform, also entered the capital market by listing three more stock tokens from innovation and finance behemoths.
Binance, the world’s largest crypto exchange, has revealed that it would list MicroStrategy (MSTR), Microsoft (MSFT), and Apple (AAPL) tokens on its website. On April 26, the MSTR/BUSD pair will be identified. The other two, which will be tradable in Binance’s stablecoin, will go live on April 28 and 30, respectively. Binance already has Coinbase (COIN/BUSD) and Tesla (TSLA/BUSD) stock token pairs.
A stock token represents one ordinary share of the related stock.
According to the announcement, the stock tokens constitute one ordinary share of the related stock. Holders would be eligible for economic gains, including future dividends, on the underlying stock. It went on to say that they are entirely backed by a depository portfolio of underlying securities owned by CM-Equity AG, Germany (“CM-E”). Trading will take place within conventional business hours, according to Binance. Residents in Mainland China, Turkey, and the United States are not qualified to purchase stock tokens. There will be no actual redemption of underlying securities because stock tokens are collateralized and cash-settled in BUSD.
Binance could face regulatory action in Europe if it continues to sell those tokens.
That’s from a story in the Financial Times, cryptocurrency behemoth Binance could face European regulators’ wrath for providing equity. Regulators in Europe are reportedly investigating whether the crypto exchange broke securities laws and whether the tokenized stocks adhere to accounting and corporate disclosure regulations. In a recent press conference, the UK’s Financial Conduct Authority (FCA) said it is in negotiations with Binance to see whether the latest tokenized stocks breach any regulations.