Binance add COIN, Tokenised Coinbase Stock

in LeoFinance28 days ago

Some days ago, I talked about how Binance was listing tokenized Tesla stocks to the exchange. This initial attempt to bridge the crypto market and traditional financial market has been taken a step further by adding COIN, the ticker for centralized exchange Coinbase stock.

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Remember that Coinbase did an IPO and listed their company as a publicly-traded entity. The move that is expected to raise at least $100 Billion from trading has also attracted Binance, the top exchange to the mix.

If anything, it is safe to say that the Tesla move was just testing the waters and this move takes things a step further in the right direction. As listing Tokenised Tesla stocks brought a lot of attention to the exchange, listing COIN, a stock of another crypto company makes perfect sense.

Binance stated that the Coinbase Stock Token (COIN) will be listed on 2021-04-14 (UTC), during which the COIN/BUSD trading pair will be open.

Unlike other exchanges that simply just throw in their coin and then wash trade it to the top of the pile, Coinbase decided to go a different route by listing theirs in the traditional market.

This means that while being the stock of the company, COIN would have still not been traded on Coinbase or any other exchange for that matter. Well, Binance had other ideas and just like Tesla stocks, they've tokenized this one and listed it for trade.

According to Binance, the stock tokens will offer traders a new set of benefits unlike any other seen before. The Binance stock tokens as they're called will be;

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.

Sadly, people in Mainland China, Turkey, USA Turkey, and other restricted jurisdictions will not be able to participate in the trade of stock tokens yet.

Binance seems to get everything right these days. This is yet another masterstroke in an array of deals that has seen them gain even more prominence in the financial scene. The question is, what next from here? Which other tokenized stock will you like to see listed?


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With transaction fees being so low on Binance, is there anything to stop them from putting even more stock on their platform? And could this be a threat to existing consumer-facing exchange platforms? I can see people moving from Robin Hood after the Gamestop fiasco to Binance.

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I think that's the end game for them. Attract the masses in any possible way

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That's awesome news. Binance is making buying of stocks so easy using blockchain tech. You can now trade them with a click of a button. So cool.

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Yup. Opening up a usually closed sector for the massess

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I wonder if this sale of tokens requires a securities license?
I wonder how they will funnel the dividends?
This sounds like an interesting idea..

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I don't think it does. Sounds like they're simplifying the process by bridging the Gap.

Thanks. I try to keep up with all new developments and must say it is not easy!

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Very interesting idea...CZ at it again

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This extremely cool. No need to transfer money out of Binance at all if the goal is to go into stocks after selling crypto at the end of a bull market.

What I'm hoping for is for Binance to introduce a tokenized stock that moves contrary to Bitcoin and crypto.

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What I wonder is if those from Venezuela or Nigeria will be able to participate, as it would be a great market.

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