Binance Launches Stock Tokens with German-Swiss CM-Equity AG and Digital Asset AG (news with additional features)
Munich, 12. April 2021
Binance, the global blockchain company behind the world’s largest digital asset exchange, today announces the launch of zero commission tradable stock tokens to broaden access across traditional capital and cryptocurrency in cooperation with CM-Equity AG, a licensed investment firm in Germany, and Swiss-based Digital Assets AG, an asset tokenization platform. Each digital token represents one share of equity stock and is fully backed by a depository portfolio of underlying securities that represents the outstanding tokens. Users will be able to trade fractional tokens.
The first stock tokens announced will be of Tesla, the largest automaker by market capitalization, and their minimum trade size is one-hundredth of a stock token, representing the same fraction of a Tesla share. Stock tokens are priced and settled in Binance USD („BUSD“), a regulated stablecoin pegged to the U.S. dollar and issued by Paxos Trust Company.
Stock tokens enable greater financial participation by fractionalizing a highly sought-after asset class of publicly-tradable equities into more affordable units. Holders of stock tokens qualify for capital returns on the underlying equity, including potential dividends and stock splits, as they would from holding traditional shares.
Binance users who are knowledgeable about crypto’s fractional properties can now diversify into equity assets using a digital currency and platform they are familiar with. Conventional investors can access equities in smaller quantities as well as gain exposure to the fast-growing crypto market through the largest and most liquid digital asset exchange. In Q1 2021 Binance recorded growth of 260% and 346% in traded volume and users respectively, while the total market value of cryptocurrencies recently surpassed $2 trillion, indicating accelerated adoption.
CM-Equity is a 19 year old, according to §32 KWG regulated financial institution from Munich.
CM-Equity was early involved as a pioneer in the field of digital asset management. With a fully licensed, interfaced capital market infrastructure platform for digital assets for companies, FinTechs and investors, CM-Equity has advanced to become one of the most popular players in the market for digital assets in Germany and Europe. The company wants to make the new digital capital markets 4.0 accessible to everyone and offers innovative and regulatory-compliant access to the most liquid trading venues while at the same time offering the most secure storage.
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About Binance Exchange
Binance is the world’s leading blockchain and cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. Trusted by millions worldwide, the Binance platform is dedicated to increasing the freedom of money for users, and features an unmatched portfolio of crypto products and offerings, including: trading and finance, education, data and research, social good, investment and incubation, decentralization and infrastructure solutions, and more. For more information, visit: https://www.binance.com.
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About Digital Assets AG:
Swiss based Digital Assets AG (www.digitalassets.ag) is the leading boutique firm focused on the design, structuring and the issuance of tokenized financial products. Digital Assets AG drives innovation in capital markets and builds bridges in between TradFi and DeFi with its partners such as FTX, Alameda, Bittrex and many others.