After Binance’s controversial listing of Tesla (TSLA) and Coinbase(CoIN) stock tokens, Binance has doubled down and now announced three more. Binance is launching three new stock tokens – Micro strategy (MSTR), Apple (AAPL), and Microsoft (MSFT) over this week.
Binance stock Tokens are “tokens of stock” that trade on Traditional stock exchanges. Each represents one ordinary share of the relevant stock. These stocks are fully backed by a depository portfolio of underlying securities held by CM-Equity AG, Germany (“CE-E”).
To purchase these tokens first needs to convert dollars into Binance stablecoin called BUSD, which is pegged to the value of the dollar. The trading stock token will follow traditional exchange hours. It will not be available for Residents in Mainland China, Turkey, the US, and other jurisdictions as finally determined by CM-E. Each of these stocks represents one standard share of the stock on the Nasdaq.
Binance has chosen to add more stock tokens just after the exchange faced scrutiny from EU regulators after listing the Tesla stock tokens.
Last week, The UK’s Financial conduct authority said that it is “Working with the firm to understand the product, the regulations that may apply to it and how it is marketed. Firms and their senior management team are responsible for determining whether the product and services fall within the remit of the FCA.”
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