The Binance stock token market was introduced on Monday (April 12). This new initiative from the leading cryptocurrency exchange enables the public to access or buy/sell shares of popular companies listed on the stock market. Notably, many people are unable to access the US stock market, probably because of their jurisdiction and regulations. However, Binance is bridging this gap by introducing tokenized stocks trading on its platform.
So, this article will inform you on how to trade Binance stocks tokens on mobile or desktop, which is as easy as buying cryptocurrencies on the exchange. Before that, let’s look at the meaning of tokenized stocks.
What are stock tokens?
Stock tokens are simply the tokenized version of company shares trading ok traditional exchanges like NASDAQ or NYSE. These tokens are pegged 1:1 to the underlying assets. Hence, the price of the real stock would be the same as the tokenized stock, meaning that the tokens will increase or decrease in value in accordance with the underlying assets.
Binance Stock Tokens are zero-commission digital tokens fully backed by a depository portfolio of underlying securities that represents the outstanding tokens. Holders of stock tokens qualify for economic returns on the underlying shares, including potential dividends.the exchange wrote in the announcement.
Note: Binance stock token market isn’t available for users in Turkey, Mainland China, and other restricted countries.
What stock is available on the Binance stock token market?
The stock tokens market on Binance barely launched. Hence, the exchange only supports the Tesla (TSLA) stock as the first-ever tokenized stock on its trading platform.
The TSLA token began trading on Binance at 1:35 PM, April 12, 2021. The available trading pair for the stock token is TSLA/BUSD. Binance intends to add more stock tokens in the future.
Binance will continue to respond to market demand by listing more stock tokens and features. Trading of stock tokens will follow traditional exchange hours.the exchange wrote.
How to trade Binance stock tokens easily
In order to stock tokens on Binance, interested investors or traders must be registered with the exchange. Binance also said they must pass their know-your-customer information and other compliance documents.
Trading on Mobile
- On mobile, navigate to Binance services and click on stock tokens from the trade section.
- You will be redirected to another page where you can access all the available Binance stock tokens (only TSLA at the moment).
- Click on Trade from the three-dot icon on your preferred token.
- That leads up to the trading page for the TSLA token, where you can place your buy and sell order.
- In order to buy, fill the quantity of Tesla shares you wish to buy based on the price and click the green-buy button.
- You can exit the token by entering the tokens you want to sell and click the red-sell button.
All easily done!
When can I trade stock tokens on Binance?
Binance stock tokens can be traded about five minutes after the market opens and five minutes before the market closes.
Are these stock tokens redeemable?
The stock tokens on Binance can be redeemed, and they are settled in stablecoin like the BUSD. You can also trade the tokens for another cryptocurrency on the exchange.