Binance cryptocurrency exchange has added new tokenized shares of leading US companies, Microstrategy, Apple, and Microsoft. Trading starts today.
April 26, 2021 | AtoZ Markets – Microstrategy (MSTR), Apple (AAPL) and Microsoft (MSFT) Exchange Traded Tokens will be available on Binance today, April 26. The listing of tokenized shares will proceed as follows:
- Microstrategy (MSTR / BUSD) at 2021-04-26 1:30 PM (UTC)
- Apple (AAPL / BUSD) at 2021-04-28 1:30 PM (UTC)
- Microsoft (MSFT / BUSD) at 2021-04-30 1:30 PM (UTC)
“Tokenized shares on Binance are tokens for shares of companies that are traded on traditional stock exchanges. Each token represents one common share of the respective company. These exchange-traded tokens are fully supported by a custodial portfolio of securities held by CM-Equity AG, Germany (“CM-E”). Holders of exchange tokens will have the right to receive economic profits from underlying shares, including potential dividends,” Binance said.
It will be possible to trade tokenized shares in accordance with the opening hours of the traditional exchange. The Service is not available to residents of mainland China, Turkey, the United States, and other jurisdictions that are subject to restrictions.
European regulators are wary of share token trading
European regulators are concerned about the launch of trading in tokenized shares of Tesla and Coinbase on the Binance cryptocurrency exchange. According to the UK Financial Conduct Authority (FCA), the sale of shares through tokens may violate the law, since this type of activity requires special permission.
“We are unable to comment on a specific case due to confidentiality obligations. However, the following rule applies here: if tokens can be sold or transferred on a crypto exchange and provide economic rights such as dividends or monetary settlements, they are securities,” the FCA commented.
Binance said in a letter to the Financial Times that exchange-traded tokens are a CM-Equity product that complies with EU Mifid II market rules and BaFin banking rules. CM-Equity is a Munich-based regulated investment group that handles token transactions.
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