You can now trade the Coinbase Stock Token (COIN) on Binance
After Tesla, Binance will list the Coinbase Stock Token (COIN) on 2021-04-14 (UTC), during which the COIN/BUSD trading pair will be open – but not for everyone.
Investors in the U.S., mainland China and Turkey will not be able to own the stock tokens, which allow traders to buy and sell fractions of underlying shares, a notable if not groundbreaking effort that would lower the bar for entry into high-priced stocks for traders.
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.
Binance partnered with German investment firm CM-Equity AG and Swiss-based Digital Assets AG to offer the tokens.
FTX, a major crypto derivatives trading platform, put out a similar announcement today, stating that the platform has already listed the COIN token. “COIN is a pre-IPO contract. It tracks Coinbase’s market cap divided by 261,300,000. CBSE balances will convert into the equivalent amount of Coinbase Fractional Stock tokens at the end of Coinbase’s first public trading day,” FTX stated on its COIN/USD market page.
As AZCoin News reported today, Goldman Sachs and Nasdaq have decided Coinbase stock should start trading at $250 per share, which would value the company around $66.5 billion on a fully diluted basis, assuming an estimated 266.2 million shares outstanding.
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