Cryptocurrency exchange Binance on April 12, 2021, launched the tradable stock contract at zero commission fee enabling traders to trade tokenized versions of mainstream stocks.
The exchange has onboarded electric vehicle manufacturer Tesla (NASDAQ: TSLA) as the first stock under the flagship feature. It is no surprise the exchange opted for Tesla, which has experienced a meteoric rise, having spiked by at least 430% since last year January.
Binance decision to have Tesla onboard seems to be a strategic move considering that the EV manufacturer commands a big following. The Tesla founder Elon Musk controls a loyal following. The exposure emanating from Binance and Tesla’s popularity provides the perfect catalyst to attract new traders who would like to participate in both the traditional and crypto markets.
Picks for you
A new concept
At this point, tradable stock tokens are a new concept; with both Tesla and Binance being leaders in their respective fields, it presents a likelihood of a surge in new traders. Investors now have an opportunity to diversify their portfolio by venturing into both the crypto and the traditional stock market without having to leave the Binance platform.
In the current setting, traders who wish to venture into crypto trading and the traditional market need to use two diverse platforms. However, Binance is now offering the much-needed convenience all within a single platform. This indicates that the elusive integration of both the digital asset world and traditional finance is close to being achieved.
Leveraging on Tesla’s influence
Furthermore, alongside Musk, Tesla is a big cryptocurrency proponent, with the manufacturer investing about $1.5 billion in bitcoin. The move subsequently contributed to bitcoin hitting a new all-time. At the same time, consumers can now pay for Tesla cars using crypto. This is an indicator that both Binance and Tesla are willing to explore both spectrums of the financial world in return appealing to more users. Notably, the influence of Tesla and Musk on the cryptocurrency price movement might potentially inspire new traders.
Additionally, Binance’s focus on ease of use might be another catalyst driving new traders to the platform. Through the platform, it’s easier and seamless for traders to invest in the stock tokens. There will be fewer reasons for buying Tesla stock elsewhere, considering that the firm does not pay dividends.
The new Binance trading tool also comes with practical experience for cryptocurrency traders who will monitor traditional stocks’ price swings and digital assets on the same platform. Such a feature offers room to make sound and well-diversified investment decisions.
[binance]
