Binance – the biggest cryptocurrency exchange in the world – announced its listing of the Coinbase Stock Token (COIN) on April 14. This means users can now trade fractional Coinbase stocks on Binance as part of the COIN/BUSD pair.
The COIN and Binance Stock Token (BUSD) pair is the second stock token to be traded on Binance. The first-ever BUSD token was set for trading fractional Tesla shares. The Coinbase-related announcement also states that “Binance will continue to respond to market demand by listing more stock tokens and features.”
Binance briefly explained the background behind the Binance token (BUSD), stating that “Binance Stock Tokens are zero-commission digital tokens fully backed by a depository portfolio of underlying securities that represents the outstanding tokens.”
The tokens allow the holders to qualify for economic benefits on their underlying shares, which is a more lucrative offer when compared to trading options. Unlike standard crypto-world trading, which is somewhat similar in nature to crypto gambling, these token-based trades are strictly regulated: Know-Your-Customer (KYC) and other relevant compliance measures are mandatory, and restricted jurisdictions will not be able to participate in the trade. According to the announcement, trading will follow the traditional exchange hours.
Binance coin (BNB) currently holds the third-largest cryptocurrency market cap, especially after its recent surge. The BNB price reached an all-time high of $635 in April and resides in the $510-$570 range at the moment. The total market cap landed around $78 billion.
The Coinbase listing debuted on NASDAQ on 14 April, too. COIN Stock’s reference price was set at $250 per share, but it quickly rose above $300. Coinbase’s total value is nearly $86 billion. In the official announcement, Coinbase’s co-founder and CEO, Brian Armstrong, described this listing as a milestone toward Coinbase’s mission “to increase economic freedom in the world.”