Home
News
- Binance is expanding its stock tokens offerings by listing Apple, Microsoft, and Microstrategy.
- Binance Stock Tokens are tokenized equities backed by a depository portfolio of underlying securities.
- The tokenized shares qualify investors for economic returns or dividends.
Announced mere weeks ago, the world’s leading cryptocurrency exchange, Binance, offers stock tokens on its platform, enabling crypto-trade with publicly listed companies to its users. However, the initial offering was limited to just Tesla and Coinbase.
Following its successful initial rollout, the exchange is looking to expand its stock tokens offerings. According to Binance’s Monday press release, the firm is listing Apple, Microsoft, and Microstrategy; tokens to be denominated in the exchange’s native stablecoin, BUSD.
The Binance Stock Tokens
The BTC news portal, Bitcoinist, defines the Binance Stock Tokens as “tokenized equities that can be traded on traditional stock exchanges.” The announcement reads each such token as an ordinary share of the stock, “fully backed by a depository portfolio of underlying securities held by CM-Equity AG, Germany.”
Binance revealed the stock tokens’ trade availability would coincide with traditional market hours. Moreover, it won’t be available to users across restricted nations, including mainland China, Turkey, and the United States.
Returns and Payouts
Additionally, the tokenized shares will qualify investors for economic returns on the underlying, i.e., dividends. While Coinbase, Microstrategy, and Tesla do not pay out dividends, Microsoft and Apple yield quarterly.
FinViz reports, Apple (AAPL) pays a quarterly dividend of 0.61%, i.e., $0.82 per share, and for Microsoft (MSFT), it is 0.86%.
Can Stock Tokens Replace Crypto Tokens?
Despite the profits, the possibility of stock tokens becoming a major investment offering on Binance still seems questionable. A significant cause of such could be the relatively higher and popular on-chain staking rewards. For instance, Polkadot (DOT) and Kusama (KSM) offer a 12% annual percentage yield (APY), and Ethereum’s APY is 5-7%.
Moreover, scrutinizing Binance’s recent venture, some regulators claim the exchange does not yet have the necessary licenses required to offer equities on its platform.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
