Binance to Facilitate Trading of Apple & Microsoft Stock in Tokenized Form
Binance cryptocurrency exchange has listed three new stocks in the form of tokens on their platform as part of the Binance Stock Token program. Interestingly, the firm has taken the initiative despite the continuing scrutiny over the previously listed tokens.
As per the number one cryptocurrency exchange in terms of transactional volume, Microstrategy (MSTR), Apple (AAPL), and Microsoft (MSFT), in tokenized form, will be listed for trading on the 26th, 28th, and 30th of April 2021, respectively.
In particular, Microstrategy (MSTR/BUSD pair) will initially get list on April 26, 2021, at 1:30 PM UTC. This will be followed by the listing of Apple (AAPL/BUSD pair) on April 28, 2021. Eventually, Microsoft token (MSFT/BUSD pair) will get listed in this round of listing.
The Binance Stock Token program was rolled out to facilitate retail traders to invest in stocks listed on traditional markets. However, the earlier listing of Binance is getting scrutinized as the regulators have raised objection to tokenize and list the equities.
The Financial Conduct Authority (FCA) has issued a statement saying that they are interacting with Binance administration to understand the product offering in a better manner and how they are offered without violating their operational guidelines set forth by the regulator. Notably, Binance has facilitated its clients to utilize Binance USD (BUSD), an in-house stablecoin, to acquire one-hundredth of the underlying equity.
New Stock Tokens to Be Made Available on https://t.co/QILSkzOI1K (2021-04-26)
— Binance (@binance) April 26, 2021
BaFIN, the German watchdog, did not affirm the launch of an investigation on listing of Tesla and Coinbase in tokenized form by Binance exchange. Nevertheless, they pointed to the law that a crypto exchange can add a token to its platform if it can be transferred and has economic viability. So, in the aforesaid case, they precisely comply with the security laws and call for the release of the prospectus.
Binance firmly defends that the tokens does not necessitate prospectus as they can be bought and sold only within the domain of the CM-Equity. Furthermore, they are in accordance with the banking rules of BaFIN and Mifid II market guidelines.
In contrast to the general advantages offered by securities, Binance asserts that the Coinbase and Tesla holders will not possess any voting right, even though they will have a right over dividends.
In their media release, Binance has guaranteed traders that the stock tokens listed by them comply in totality with the prevailing regulations. The firm also clarified that they are backed by the securities held in the depository held by the CM-Equity AG.
As per the exchange, additional stock tokens listed by the CM-Equity will get added to the platform as they consistently see market demand. Notably, the stock tokens will be available for trading only during the traditional exchange hours.
The tokens will also comply with the jurisdiction prohibition as explained by the CM-E. Currently, the residents of the US, Turkey, Mainland China and few more countries are not allowed to trade the stocks in the tokenized form.