The users of Binance have been speculating what the new stock tokens will do to the market. There has already been some remarkable results that appeared in the market when Binance listed the Tesla stock as the first tradable stock on the Binance Exchange. But what is the Stock Token? Lets take a dive into it and narrow it down.
What is a Stock Token?
A stock token is a delta-one product backed by a physical stock. Tokens that track the performance of traditional financial securities, especially public company stocks, which are called stock tokens.
The COIN / BUSD trading pair will be launched using exchange users to trade Coinbase stock fractions, all running after the token list on market.
Who can trade Stock Tokens?
Not everyone is able to trade stock tokens, those that are eligible to trade stock token will only be able to if they are in a country that allows this. Only Binance users who completed Level 2 KYC including ID and Face Verification (Or Level 3 for German users) are able to do trade in Stock Tokens.
How do Stock Tokens Work
Settled and collateralized, share tokens in BUSD currency, then this will make the calculation of returns easier and faster in the form of fiat currency tokens are cash-settled, meaning there will be no physical redemption of underlying shares.
Go to the stock tokens page, choose the token you want to trade, and click on the button to [Trade].