Benzinga | Apr 14, 2021 07:10AM EDT

Leading Crypto Exchange Binance Will List Coinbase Stock Token

Binance, the largest cryptocurrency exchange by volume, will list a tokenized version of Coinbase's stock on its platform.

What Happened: Trading for the Coinbase stock token, known as COIN, will enable users to trade fractional amounts of the Coinbase stock on Binance's website.

According to an announcement from Binance, the COIN/BUSD trading pair will be open on April 14 UTC.

BUSD is a Binance-issued stablecoin that has its value pegged to the U.S. dollar.

The Coinbase stock token will be Binance's second stock token offering. The leading crypto exchange recently listed tokenized versions of Tesla Inc (NASDAQ:TSLA) shares on its platform.

Coinbase stock tokens could be a popular investment choice for users outside the U.S. that would not otherwise have access to trade Coinbase's listed shares.

"Binance Stock Tokens are zero-commission digital tokens fully backed by a depository portfolio of underlying securities that represents the outstanding tokens. Holders of stock tokens qualify for economic returns on the underlying shares, including potential dividends," said the exchange.

Why It Matters: Coinbase's direct listing is a widely anticipated event for the crypto space, and market proponents have stated that it is likely to have a profound impact.

"This is a watershed moment for the digital asset industry, as it signifies a larger moment of credibility for a market that is maturing rapidly. Digital assets have a huge role to play in the future, and this movement will raise awareness of the industry and likely introduce more people to the benefits and power of digital assets," said Hunter Merghart, Head of US operations at crypto exchange Bitstamp.

Price Action: Bitcoin added over $3,700 to its price overnight, gaining 6% in the past 24-hours. The market-leading cryptocurrency was trading at a new all-time high of $64,442 at the time of writing, and its trading volume was up 41.67%.

Related Stories

FTX's Pre-IPO Coinbase Contract Implies $140B Valuation, Community Weighs In

How to Buy Coinbase IPO (COIN) Stock