Binance to Discontinue Trading, Cease Support for Stock Tokens
The cryptocurrency exchange Binance, in a statement on Friday, said that it is ceasing trading and discontinuing support for stock tokens.
“Effective immediately, stock tokens are unavailable for purchase on Binance.com, and Binance.com will no longer support any stock tokens after 2021-10-14 19:55 [Coordinated Universal Time],” according to the statement.
“Users who currently hold stock tokens may sell or hold them over the next 90 days.”
After October 14 at the designated time, Binance users who own stock tokens will no longer be able to sell or close their positions.
Binance will close all stock token positions on Binance.com on October 15 at 13:30 (Coordinated Universal Time).
Stock tokens are digital versions of traditional stocks, whose values are pegged to the share price of the relevant equity.
Stock tokens, also known as tokenized stocks, are blockchain-based shares of publicly traded companies. Binance launched its stock tokens trading service in April of this year, although it didn’t appear to gain much traction.
The total trading volume of Binance’s five stock tokens offering — Apple, Coinbase, Microsoft, MicroStrategy, and Tesla — was only around $1 million at the time of writing.
Following the market direction amidst heavy competition in the investing space, Binance ventured into the space of tokenized stock trading just like FTX and Bittrex Global.
“Stock tokens demonstrate how we can democratize value transfer more seamlessly, reduce friction and costs to accessibility, without compromising on compliance or security,” said Binance CEO Changpeng Zhao.
The crypto exchange had promised to list more stock tokens in the future based on market demand. Recently, the United Kingdom Financial Service Conducts placed a ban on the cryptocurrency exchange with banks halting credit transfer arrangements in full compliance.
Binance to Discontinue Trading, Cease Support for Stock Tokens
