Cryptocurrency exchange Binance is venturing into the space of stock token trading, following the likes of FTX and Bittrex Global. To begin with, Binance has listed Tesla stock tokens. Users will be able to purchase as little as fractions of Tesla’s shares, with prices settled in Binance USD (BUSD).
Binance Stock Tokens will enable users to trade with zero commission fee. They also qualify holders for returns including dividends. However, Binance’s service follows traditional market hours, while FTX and Bittrex Global offer 24/7 tokenized stock trading.
The exchange’s native token Binance Coin (BNB) has recorded a 115% growth in the past 14 days, as it surged past $610 recently. At the time of writing (April 13, 10:09AM, HKT), BNB is trading at $592.45, up 13.6% in the previous 24 hours.
In an interview with The Block earlier, Changpeng Zhao (CZ), founder and CEO of Binance, mentioned about the tokenized stock trading service: “We do try to copy innovation when innovation is good.” Zhao said at the time, referring to FTX’s similar service.
Like FTX and Bittrex Global, Binance has also partnered with CM Equity AG and Digital Assets AG for the service.
“Thanks to Elon Musk for bringing crypto to Tesla, so we’re bringing Tesla to crypto,” CZ tweeted after the announcement.
On the other hand, HSBC, one of the world’s largest banks, bans its customers to trade MicroStrategy stock due to the company’s significant Bitcoin holdings.
“HSBC has no appetite for direct exposure to virtual currencies and limited appetite to facilitate products or securities that derive their value from VCs (virtual currencies),” HSBC said in a statement reported by Reuters today.
Clients can no longer purchase or transfer such assets, though they can continue to hold or sell them.
HSBC did not specify which countries the ban applies to. For now, HSBC’s anti-crypto policy only applies to the users of its InvestDirect stock trading platform. HSBC InvestDirect is available to customers in countries including Canada and Britain.
The timing of the move is interesting as it comes so close to crypto exchange Coinbase’s direct listing. Additionally, the move comes amid a growing embrace of crypto by large financial firms. The New York Stock Exchange (NYSE) recently announced it is issuing NFTs commemorating the “first trades” of significant stocks. The stocks include Coupang, DoorDash, Roblox, Snowflake, Spotify, and Unity.
“Innovation is what we do at the NYSE,” tweeted the exchange. “Now we want to help drive this new wave of NFT innovation.”
Swiss bank UBS is reportedly exploring to offer cryptocurrency investments to wealthy clients. This move comes after more investment banks, including Goldman Sachs and Morgan