After Binance's controversial listing of Tesla (TSLA) and Coinbase (COIN) stock tokens, Binance has doubled down and now announced three more. The exchange has listed tokenized versions of Microsoft (MSFT), Apple (AAPL) and MicroStrategy (MSTR).
The three new tokenized versions of the stocks will be made available slowly over the next week. The exchange describes the tokens as "tokens of stocks (i.e., shares of public companies) that trade on traditional stock exchanges. Each Stock Token represents one ordinary share of the relevant stock. These Stock Tokens are fully backed by a depository portfolio of underlying securities held by CM-Equity AG, Germany (“CM-E”)."
The first of the three to be listed will be MicroStrategy which will go live at 9:30 AM ET Monday. Those that wish to purchase these tokens will need to first convert dollars into the Binance stablecoin called BUSD, which is pegged to the value of a dollar. Each of these stock tokens represents one standard share of the stock on the Nasdaq exchange.
Binance has chosen to add more stock tokens just after the exchange faced scrutiny from EU regulators after its listing of the Tesla stock tokens.
Last week, the UK's Financial Conduct Authority said that it is "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."
Binance has decided to list more tokens in spite of the firm's examination from authorities, perhaps due to the company's confidence that it is operating within the law.
TheStreet
