Hours before Coinbase starts trading on the Nasdaq, Binance, another top cryptocurrency exchange, has announced the launch of the Coinbase Stock Token on the platform.
Binance launches Coinbase tokens
The listing will follow immediately after Coinbase’s planned listing on the Nasdaq today.
After the trading pair is open, Binance users can trade the token with no commissions. Earlier this week, the exchange announced the option for users to trade a similar stock token in Tesla. The new function is made possible by a partnership with CM-Equity AG and Digital Assets AG.
Since the asset is a token version of the stock, traders can even buy a tiny fraction of the underlying stock. Binance said real Coinbase stocks would support any stock token.
The token is available to merchants who meet the KYC requirements. People from restricted jurisdictions, including the United States, are prohibited.
According to Binance, the trade will be in its native stable BUSD coin.
Since the tokens are fully backed by underlying securities, Binance announced that holders would also be eligible for benefits such as dividends.