The world’s top crypto exchange Binance announced that it would be listing tokens of MicroStrategy (MSTR), Microsoft (MSFT), and Apple (AAPL) on its platform. The MSTR/BUSD pair will be listed on April 26. The other two, also tradable in Binance’s own stablecoin, will launch on April 28 and 30. Binance already has two stock token pairs listed for Coinbase (COIN/BUSD) and Tesla (TSLA/BUSD).
Stock tokens represent one ordinary share of the relevant stock.
The announcement explained that the stock tokens represent one ordinary share of the relevant stock. Holders will qualify for economic returns on the underlying shares, including potential dividends. They are fully backed by a depository portfolio of underlying securities held by CM-Equity AG, Germany (“CM-E”), it added. Binance stated that trading would follow traditional market hours. The stock tokens aren’t available for residents in Mainland China, Turkey, or the United States. Stock tokens are collateralized and cash-settled in BUSD, meaning there will be no physical redemption of underlying shares.
European regulators might investigate Binance for offering such tokens.
According to the Financial Times report, crypto giant Binance might face the wrath of European regulators for offering equity. European regulators are currently examining whether the crypto exchange violated the securities laws and whether the tokenized stocks comply with rules governing transparency and corporate disclosures. In a recent press briefing, the UK’s Financial Conduct Authority (FCA) said that it talks with the Binance to determine whether the new tokenized stocks violated any regulations. “We are working with the firm to understand the product, the regulations that may apply to it, and how it is marketed. Firms and their senior management teams are responsible for determining whether their products and services fall within the remit of the FCA,” the official statement read.