Tesla’s stock (TSLA) will be the first to trade as a token on Binance’s exchange so that users can buy fractional shares using cryptocurrency.
Over the last few months, Tesla has made some move in the rapidly growing cryptocurrency space.
The move has helped boost the price of Bitcoin and put an even bigger spotlight on cryptocurrency.
Now, Tesla is getting some love back from the crypto community, which now has a new way to invest in the electric automaker.
Binance, one of the world largest’s cryptocurrency exchanges, announced today the launch of its Zero-Commission, Tradable Stock Tokens — starting with the first token being linked to Tesla’s stock.
The company described this new stock token product:
“Binance Stock Tokens are zero-commission digital tokens fully backed by a depository portfolio of underlying securities that represents the outstanding tokens. Holders of stock tokens qualify for economic returns on the underlying shares, including potential dividends.”
The price of the TSLA token is going to be linked to BUSD, which is a cryptocurrency attached to the value of the US dollar:
The first Binance Stock Token to be listed is Tesla Inc. (TSLA). Trading for the TSLA/BUSD pair is scheduled to open at 2021-04-12 1:35 PM (UTC). Users will be able to trade fractional Tesla stock on the Binance website.
Binance didn’t explain why it decided to launch the platform with Tesla’s stock first, but the automaker’s stock often ranks as the most popular on stock trading platforms for individual investors, like Robinhood in the US and Wealtsimple Trade in Canada.
The TSLA/BUSD token has already started trading on the platform today.
One of the advantages of the new product is that investors can acquire fractional shares of Tesla’s stock token.
Tesla’s stock has increased so much in recent years that it has become harder for smaller investors to buy the stock.
The company did a 5 for 1 stock split last year to make its stock cheaper, but it has since surged again, and it is now trading for around $700 per share.
If you are interested in this new way to invest in Tesla, you can sign up to use Binance through this link. You should do your own due diligence before trading cryptocurrency and invest at your own risk.