The Binance Cryptocurrency Exchange announced that it will issue tokenized shares of Coinbase stock. This will be the second tokenized stock offering on the exchange.
Binance to List Coinbase Stock Token
Recently, Binance began offering tokenized stocks and announced today that once its competitor Coinbase shares are listed, it will include its digital stocks.
Coinbase will be publicly listed on April 14, and its stock will be listed on the Nasdaq Stock Exchange.
Binance Stock Token
Binance launched its first zero-commission tradable stock token earlier this week. Each stock token is worth a specific stock. Each token is backed by a corresponding share, and Binance keeps it in the stock portfolio of the underlying securities. Binance is working with investment company CM-Equity AG and asset tokenization platform Digital Assets AG to provide these tokens.
Traders can buy at least 1/100 of the stock tokens, which is equivalent to a small part of the tokens. Binance will price and settle the stock tokens at the price of Binance USD (BUSD), which is an exchange stable currency pegged to the U.S. dollar.
Binance launched its tokenized stock plan when it listed Tesla shares on April 12. Tesla is very popular among cryptocurrency traders. In February, Tesla CEO Elon Musk was known for buying 1.5 billion U.S. dollars in Bitcoin (BTC) as part of its cash reserves.
Coinbase’s Public Listing
When the market opens later today, Coinbase’s stock will be listed on the Nasdaq exchange. Coinbase first announced its intention to go public in December 2020.
Then, the company formally applied to the US Securities and Exchange Commission (SEC) for a public listing in February 2020. Then conduct a private auction on the Nasdaq private equity market, setting the initial price of Coinbase stock at $350 per share. This brings the company’s initial valuation to $90 billion.
After modifying Coinbase’s documents in late March, the SEC finally announced that its submission took effect on April 1. Therefore, Coinbase announced that its stock will be listed on the Nasdaq on April 14 under the ticker symbol “COIN”.
As the first publicly listed cryptocurrency exchange, investors believe this is a watershed in the industry. Although due to its novelty, experts predict large fluctuations in the stock.