Crypto exchange Binance is today launching an interesting new kind of token on its platform; stock tokens. These are tokens that represent traditional stocks on the blockchain. The first stock token that Binance launches is a token that is linked to Tesla’s shares. Such tokens bring several benefits.

Tokenization is one of the benefits of blockchain technology. All kinds of things can be tokenized, such as art in the form of non-fungible tokens (NFTs). But also real estate, other objects and therefore traditional shares can be expressed in tokens on the blockchain.

When we look at shares, the tokenization of Tesla shares in this case means that investors can now also buy a piece of a share. Normally you have to buy a whole share. Tesla’s stock price is currently around $ 700, so the barrier to entry to these stocks is high.

By tokenizing shares, small investors can also benefit from the possible future price increases of the Tesla share. This is one of the points that Binance CEO Changpang Zhao makes in the announcement:

“Stock tokens demonstrate how we can seamlessly democratize value transfer, reduce friction and generally reduce costs, without compromising on compliance or security. By connecting traditional and crypto markets, we are building a new technological bridge for a more inclusive financial future. ”

The TSLA tokens can be traded from today against Binance USD (BUSD), the platform’s stablecoin. More stock tokens will likely be added to Binance’s trading platform in the near future.

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