Binance will cease support for Stock Tokens
According to the announcement on July 16, Binance said it will be winding down support for stock tokens on Binance.com to shift its commercial focus to other product offerings. Effective immediately, stock tokens are unavailable for purchase on Binance.com, and Binance.com will no longer support any stock tokens after 2021-10-14 19:55 (UTC).
Binance is supporting Tesla (TSLA), Apple (AAPL), Coinbase (COIN), Microsoft (MSFT) and MicroStrategy (MSTR) on the Stock Token page.
Image via Binance
Binance’s users who currently hold stock tokens may sell or hold them over the next 90 days. Users will no longer be able to manually sell or close their positions after 2021-10-14 19:55 (UTC). Thereafter all stock token positions on Binance.com will be closed at 2021-10-15 13:30 (UTC).
Migration to CM-Equity AG for EEA Users
Binance has partnered with German investment firm CM-Equity AG and Swiss-based Digital Assets AG to offer the tokens.
CM-Equity AG is establishing its own portal to support users residing in the European Economic Area (EEA) and users that reside in Switzerland. Those users may transition their stock token balances to CM-Equity AG once its new portal is established.
The portal is scheduled to be open approximately two-to-four weeks before 2021-10-15 (UTC), and additional KYC measures will be requested by CM-Equity AG to complete the transition.
What is Stock Token
Stock tokens are tokens that closely track the performance of traditional financial securities, particularly shares of publicly traded companies. Stock tokens are delta-one products that are backed by physical shares. This means for a given instantaneous move in the price of the underlying asset there is expected to be an identical move in the price of the derivative.
The Binance stock tokens are fully backed and will behave in many of the same ways as the shares they represent. Token holders qualify for returns and Binance will automatically pass on dividends or issue tokens representing any new shares following a split.
- You Can Now Trade The Coinbase Stock Token (COIN) On Binance
- Binance Will List Microstrategy (MSTR), Apple (AAPL) And Microsoft (MSFT) Stock Tokens