Binance’s share token offering has been expanded and you can now trade shares of Apple, Microsoft, and MicroStrategy. How?
Binance has tried to explore every possible sector within the cryptocurrency market, and has even gone further. Now Binance users can also trade fractions of publicly traded companies. For example, the MicroStrategy token is already available, while those of Apple and Microsoft arrive in the next few days.
Yes, as you read. It is now possible to invest in Apple, Microsoft and MicroStrategy from the largest cryptocurrency exchange, Binance. The company announced the launch of tokens that follow the stock price of these companies this Monday, April 26.
With this option, Binance allows its users to trade fractions of stock shares of various publicly traded companies without commissions. The first token launched had been Tesla’s.
How does this token and share system work on Binance?
Each token represents a share of the company in question. In addition, the trading of these tokens will follow the traditional trading hours of the exchange, unlike cryptocurrency trading that works without interruptions.
APPL, Apple’s token, will be available from April 28, while Binance users will be able to trade Microsoft shares from Friday 30 of this month.
The representations of shares that are traded on Binance are issued by the investment firm CM-Equity (CM-E), based in Germany. This same entity supports the existence of the tokens on the exchange with a deposit fund under its protection, according to the Binance Statement.
What restrictions are there?
Although the idea is quite good, there are some restrictions that apply. For example, it is not available to residents of mainland China, Turkey, the United States, and other restricted jurisdictions, as ultimately determined by CM-E.
Binance’s foray into the world of traditional markets has not gone unnoticed by watchful eyes in Europe. In particular, the UK’s Financial Conduct Authority (FCA) and Germany’s Federal Financial Supervisory Authority (BaFin) showed interest. Shortly after the launch of the new product, both institutions began to assess whether the trading of tokenized shares on Binance was in compliance with current regulations.
Binance, for its part, responded that its share tokens fully comply with European regulations. Meanwhile, the company talks directly with the agencies, as part of the investigation.