Binance Launches Coinbase Stock Token Shares

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In Brief
  • Binance will list the Coinbase stock token once the rival exchange’s shares are listed today.

  • Binance recently launched stock tokens, its first was for Tesla.

  • The shares of Coinbase will be publicly listed on the Nasdaq exchange later today.

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The Binance cryptocurrency exchange announced that it’s launching tokenized shares of Coinbase stock. This will be the second tokenized stock offering on the exchange.

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Recently, Binance began to offer tokenized stock shares and announced today that it will include its rival digital shares of Coinbase stock once they hit the market.

Coinbase is going public today, April 14, and will see its shares listed on the Nasdaq stock exchange.

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Binance stock tokens

Binance launched its first zero-commission tradable stock tokens earlier this week. Each stock token is worth one share of a particular stock. A corresponding share backs each token, which Binance keeps in a depository portfolio of underlying securities. Binance is offering these tokens in partnership with investment firm CM-Equity AG and asset tokenization platform Digital Assets AG.

Traders can buy a minimum of 1/100 of a stock token, which represents the same fraction of a share. Binance will price and settle its stock tokens in Binance USD (BUSD), the exchange’s stablecoin that’s pegged to the U.S. dollar. 

Binance kicked off the tokenized stock initiative when it listed shares of Tesla on April 12. Tesla is quite popular among cryptocurrency traders. In February, Tesla CEO Elon Musk famously purchased $1.5 billion in bitcoin (BTC) as a part of its cash reserves.

Coinbase’s public listing

Shares of Coinbase will be listed on the Nasdaq exchange when the market opens later today. Coinbase first declared its intention to go public in December 2020.

The company then formally filed for a public listing with the US.. Securities and Exchange Commission (SEC) in February 2021. A private auction on the Nasdaq Private Market then set the preliminary price of Coinbase shares at $350 each. This put the company’s tentative valuation at $90 billion.

After Coinbase amended its filing later in March, the SEC finally declared its submission as effective on April 1. Thus, Coinbase announced its shares would be listed on the Nasdaq on April 14, under the ticker “COIN.”

As the first crypto exchange to go public, investors consider this a watershed moment for the industry. Although, due to its novelty, experts predict a great deal of volatility for the stock.

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Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage. He can best be described as an optimistic center-left skeptic.

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