Microsoft, Apple, MicroStrategy to Be Listed on Binance as Tokenized Stocks

The move means Binance users will be able to qualify for economic returns on the underlying shares, which will include potential dividends.

Apr 26, 2021 at 8:55 a.m. UTC
Updated Sep 14, 2021 at 12:46 p.m. UTC

Cryptocurrency exchange platform Binance is looking to tokenize more stocks of some of the world's largest companies.

According to a blog post on Monday, Binance will list MicroStrategy, Microsoft and Apple, providing Binance users with exposure via the tokenization of equities. The tokens are expected to be denominated in the exchange's stablecoin, BUSD.

The move means Binance users will be able to qualify for economic returns on the underlying shares, which will include potential dividends. The tokens also allow Binance customers to purchase as little as one-hundredth of a regular stock using BUSD.

Binance's stock tokens are tokenized equities that can be traded on traditional stock exchanges. Each tokenized stock represents one ordinary share of the stock and is backed by a depository portfolio of underlying securities held by CM-Equity AG, Germany, according to the post.

Two stock tokens have begun trading on Binance including electric vehicle maker Tesla and cryptocurrency exchange Coinbase. Those listings are already ruffling the feathers of regulators who say the exchange has not acquired the necessary license to begin marketing equities to the public.

Regardless, Binance said it would "monitor market demand" and may provide more stock tokens in the future.

Tokenized stocks of MicroStrategy will begin on Monday at 13:30 UTC, while Apple will be available on April 28 at the same time. Tokenized shares of Microsoft will come online by April 30.

The tokens will only be available for trading during traditional exchange hours and are not available for residents in mainland China, Turkey, the U.S. and other restricted jurisdictions as determined by CME-Equity, according to the post.

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