Binance, the largest cryptocurrency exchange by volume, will list three new stock tokens in this week: Billionaire cryptocurrency investor, Michael Saylor’s MicroStrategy (NASDAQ:MSTR), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT). MSTR tokens on 26th, followed by AAPL tokens on April 28 and MSFT tokens on April 30.
With the latest listings, the top two largest corporations in the United States, with a total market capitalization of over $4 trillion, will join the crypto space, indicating that other companies will follow suit in the coming months. According to Binance, the stock tokens are “completely backed by a depository portfolio of underlying shares” owned by CM-Equity AG, a German financial services company.
New Stock Tokens to Be Made Available on https://t.co/QILSkzOI1K (2021-04-26)
— Binance (@binance) April 26, 2021
Binance said in a statement “Binance Stock Tokens are tokens of stocks (i.e., shares of public companies) that trade on traditional stock exchanges. Each Stock Token represents one ordinary share of the relevant stock. These Stock Tokens are fully backed by a depository portfolio of underlying securities held by CM-Equity AG, Germany (“CM-E”). Holders of Stock Tokens will qualify for economic returns on the underlying shares, including potential dividends”.
The tokens would only be tradable against Binance USD, the exchange’s stablecoin (BUSD). Residents in mainland China, the United States, Turkey, and other CM-Equity-restricted jurisdictions are unable to purchase Binance stock tokens.
A stock token, also known as a “token,” is one of the digital tools that businesses have used to democratically collect money by issuing digital tokens or coins that are backed by digital assets. These coins are sold by a public channel known as an Initial Coin Offering (ICO), which is equivalent to an Initial Public Offering.
Image: apple-inc-Matias Cruz and Simon
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