Crypto exchange Binance launches Tesla (TSLA) token for fractional stock trading

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Cryptocurrency exchange platform Binance has announced that it is launching zero-commission tradable stock tokens called Binance Stock Tokens (BST), which would allow users to trade in fractional stocks. The first BST that the cryptocurrency exchange would offer is Tesla (NASDAQ:TSLA), which would be open for fractional trading at Binance on April 12, 2021. 

All of the crypto exchange platform’s stock tokens are denominated, settled, and collateralized in Binance USD (BUSD), a US dollar-denominated stablecoin. As per a report from Decrypt, Binance’s stock tokens are backed by a portfolio of underlying securities. Thus, holders of the tokens would qualify for returns on the underlying shares, such as potential dividends. 

So far, Tesla stock is the only company supported by Binance’s stock token program. However, the exchange has stated that it plans to respond to market demand, which means that more stock tokens would likely be available in the future, provided that there is ample interest. 

Having Tesla as Binance’s first stock token is quite symbolic considering that the EV maker is also an automaker that accepts vehicle payments through Bitcoin. Tesla made headlines earlier this year when it announced that it had invested $1.5 billion of its cash in Bitcoin, and CEO Elon Musk promptly followed up by stating that the company would eventually accept cryptocurrency payments. 

Musk’s words rang true. Last month, Tesla updated its vehicle configurator to support Bitcoin payments, which was appreciated by many in the electric vehicle community. While the taxes that may ensue from such purchases may be substantial, the fact that cryptocurrency could be directly used to purchase a premium all-electric vehicle was still notable, if not groundbreaking in its own right. 

Elon Musk has been pretty open about his support for cryptocurrencies over the past few months. Apart from his usual jokes and memes about Dogecoin, Musk has also noted that he supports Bitcoin and that he believes the cryptocurrency is on the “verge of getting broad acceptance by conventional finance people.”

Source: https://www.teslarati.com

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